Home > Uncategorized > Betsy DeVos Takes the Side of Private College Scammers: Is Anyone Surprised?

Betsy DeVos Takes the Side of Private College Scammers: Is Anyone Surprised?

Late last week, Secretary of Education Betsy DeVos announced that the USDOE was changing its stance on the forgiveness of loans to students who were scammed by private for-profit colleges. Instead of the virtual blanket forgiveness provided by the Obama administration, Ms. DeVos was limiting the number of bilked students whose loans wold be forgiven. As reported in the New York Post by the AP:

The Education Department is considering only partially forgiving federal loans for students defrauded by for-profit colleges, according to department officials, abandoning the Obama administration’s policy of erasing that debt.

Under President Barack Obama, tens of thousands of students deceived by now-defunct for-profit schools had over $550 million in such loans canceled.

But President Donald Trump’s education secretary, Betsy DeVos, is working on a plan that could grant such students just partial relief, according to department officials. The department may look at the average earnings of students in similar programs and schools to determine how much debt to wipe away.

The consequences of this decision will be favorable for the profiteers and the banks that issued the loans, but deleterious to the borrowers who were misled by the fraudulent schools. It is particularly problematic since some students have already received complete forgiveness for their loans while 65,000 others, whose reviews were underway, might get only partial forgiveness… or MAYBE the full forgiveness will be rescinded! The AP report indicates USDOE indicated to a contractor trying to resolve the loan repayments that “policy changes may necessitate certain claims already processed be revisited to assess other attributes”. It went on to say that “The department would not further clarify the meaning of that notice.

This whole episode was  lampooned by Gail Collins in NYTimes, who noted throughout her column the fact that Trump University was one of the many for-profit colleges forced to pay millions of dollars in fines for misleading advertising, excessive tuition costs, and usurious loans. She concluded her column noting that Mr. DeVos’ suspension of loan forgiveness would provide the public with a constant reminder of Mr. Trump’s mismanagement of his “University”:

For instance, the Department of Education has stopped approving new fraud claims against for-profits, leaving a backlog of more than 87,000. Every time the number goes up, we could say, “This is even more than the number of students who complained about their loans for Trump University.”

If DeVos says what the country needs now is less regulation, we can recall that Trump University had instructors allegedly handpicked by Donald Trump himself, although it turned out that he’d never even met them.

Consider it a teaching moment.

It is a teaching moment for anyone in “class” that is paying attention. The question is: are the voters paying attention… or are they distracted by tweets about the NFL players who continue to protest the treatment of African Americans by the police?

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