Betsy DeVos, the woman Trump put in charge of the Department of Education who, subsequently, makes more grammatical errors than a third grader, just decided to make life a bit more difficult for those in the working and middle classes seeking a higher education.
This week DeVos issued a memorandum that officially rolled back Obama-era policies that were put in place to protect student borrowers from predatory lenders and offer assistance to those struggling to repay their student loans.
Related: Angry With DeVos: Trump Demands She Stand Down Or Resign
This coupled with Trump’s war on the Consumer Financial Protections Bureau, will mean big trouble for consumers in general and young people trying to go to college specifically.
According to an article from Forbes:
“That could mean the functional end to the consumer watchdog, which has been responsible for returning roughly $11.8 billion to some 29 million consumers since its inception in 2011, according to data from the bureau. That’s an average of $407 returned to each affected consumer, affecting roughly 9% of the U.S. population (assuming no single consumer was a victim in more than one case).”
There is no question that $11.8 billion is a lot of cheddar, so is the $1.1 trillion in government-owned student loans.
DeVos said the previous administration’s policies were full of holes and shortcomings. She wouldn’t say what, exactly those shortcomings were and her spokesmen, Jim Bradshaw and Matthew Frendewey, didn’t respond to a request for comment by Bloomberg. It looks like the days of lenders fleecing the public are on their way back.
Obama’s policies also sought to limit contracts that could possibly be awarded to predatory lenders that seek to harm consumers to better their bottom line. One such lender, Navient, is a finalist for a contract and has been sued by attorneys general in two states as well as by the Consumer Financial Protection Bureau for allegations that the company abused borrowers. Navient vehemently denied these allegations.
DeVos isn’t worried about students. She is worried about the student loans.
“We must create a student loan servicing environment that provides the highest quality customer service and increases accountability and transparency for all borrowers, while also limiting the cost to taxpayers,” DeVos said.
She is basically advocating for lining bankster pockets while crapping on the little guy, if you needed the translation from bullshit to plain English. Anytime a conservative uses the term “accountability” you know they are targeting the working and middle classes while alleviating big businesses of any liability themselves.
According to Bloomberg’s article:
“DeVos’s move ‘will certainly increase the likelihood of default,’ said David Bergeron, a senior fellow at the Center for American Progress, a Washington think tank with close ties to Democrats. Bergeron worked under Democratic and Republican administrations over more than 30 years at the Education Department. He retired as the head of postsecondary education.”
With 30 years of experience backing his assertion, David Bergeron certainly knows what he is talking about.
“The Department of Education has decided it does not need to protect student loan borrowers,” said Illinois attorney general Lisa Madigan in a statement. Madigan is suing the aforementioned Navient Corp.
There is certainly a silver lining in the clouds for New Yorkers, however. Driven by Bernie Sanders’ progressive ideals they have made state universities and colleges tuition-free. Sure you have to stay in New York and work there for four years after graduation. But living in a more liberal part of the country doesn’t seem like a bad thing when you are saving thousands upon thousands of dollars on your education. Take that DeVos!
Perfectly timed featured image of DeVos looking slack-jawed via screen capture from ABC News’ Youtube channel.