Archive

Posts Tagged ‘DeVos’

Upshot Article Oversimplifies “Solution” to Complicated Problem Congress Created

July 31, 2019 Comments off

Yesterday’s NYTimes featured an article by Upshot writer Kevin Carey written on July 24 titled “It’s Easy to Forget, but a Program to Forgive Student Loans Already Exists“. There are two problems with the article from my perspective.

First, the “program to forgive student loans” is so convoluted that it’s “existence” is arguable. Contrary to the sub-headline that reads, “Democrats are campaigning to fix an issue that is already starting to resolve itself for many teachers and other public servants“, the article describes an issue that desperately needs to be fixed because the laws underpinning it were ill-conceived, allowed only five days for the initial application process, and changed directions several times over the course of time.  

Second, and most importantly, the implementation was botched because Congress failed to provide the funds needed to provide the staff required to make the implementation possible. Here are the most telling paragraphs from Mr. Carey’s article:

“(The borrowers) needed some good advice. Whom would they call? Not the Department of Education, which subcontracts the work of helping borrowers to “loan servicing companies”. Unfortunately, the servicers didn’t prove up to the task.

Loan servicers are paid a flat rate per borrower for processing loan payments and helping people navigate the repayment process. That means that the more time and effort a borrower requires, the less money the servicer makes. Someone who sets up an automatic debit from a checking account and never picks up the phone is a source of profits. Borrowers who need a lot of time-consuming assistance to ensure that their job, their loan and their repayment plan are all eligible for the forgiveness program are a financial liability.

The results were predictable. In June 2017, a few months before the first public servants were (theoretically) eligible for loan forgiveness, the Consumer Financial Protection Bureau issued a report describing the many ways loan servicers were messing things up.

This sums up the whole problem with government today: it is understaffed and therefore incapable of functioning effectively. Taxpayers want the government to come up with a FAST, CHEAP solution to complicated problems and to run like a business. As Mr. Carey explains later in the article, when USDOE outsourced their work to “loan servicing companies” they operated like a business and got a FAST and CHEAP “solution” to the complicated problem Congress created… a “solution” that padded the wallets of the “loan servicing companies” but left the borrowers high and dry…. and “proved” that government is the problem. The headline to this should read: “It’s Easy to Forget that an Effective Government Requires Bureaucrats”….

Mr. Carey concludes his article with evidence that more and more borrowers are becoming eligible, and seems to think that since the percentage of approved borrowers has increased the problem is taking care of itself. After reading the article and looking at the daunting amount the government is on the hook for, I’m not confident that there will be sufficient funds available to honor the promises they made to public employees— especially since the current administration is intent on keeping its promises to the billionaires and shareholders who received massive tax breaks.

In “Dog Bites Man” Article, NYTimes Illustrates USDOE’s Complicity in Sustaining a Failing For-Profit College

July 24, 2019 Comments off

If you want to see how the US Department of Education’s tilt in favor of for profit education institutions works, read Erica Green and Stacy Cowley’s thoroughly researched NYTimes article titled “Emails Show DeVos Aides Pulled Strings for Failing Colleges“. The article offers evidence that USDOE officials conspired with officials at Dream Center Education Holdings, a subsidiary of a Los Angeles-based megachurch, when they continued to use misleading and dishonest advertising in an effort to keep their institution alive. Because the USDOE failed to act when Dream Center was clearly bankrupt both financially and educationally, US taxpayers and– most sadly– Dream Center students are on the hook for millions of dollars.

Here’s what I find to be most infuriating about this whole episode: the complicated inter-relationships between accreditors, the USDOE officials, and USDOE regulations make it very difficult to explain what happened in a way that is readily understandable. Consequently, when this kind of issue surfaces, there is no easy fix and politicians are left to point fingers at each other and voters often take sides based on their faith in one side or another or one economic theory or another. The only clear losers in all of this are the former students of Dream Center schools who lost money out of the pockets to take the courses or face the demand to pay debts for courses that led them no where. For those who see privatization and deregulation as the best way forward, this might not be a problem. Their mantra— caveat emptor— means that the students “got what they deserved” by enrolling in a failing institution. The only problem with that line of thinking is that the government who serves as the quality control gatekeeper knowingly allowed a failing institution to advertise itself as “accredited”. The government that was complicit in misleading the consumers should pay the price… not the consumers who thought they were enrolling in a government approved institution.

LATimes Offers Good Overview of Disintegration of Desegregation

July 9, 2019 Comments off

Today’s LATimes article (link below) describes the slow erosion of efforts to integrate public schools and the predictable result: schools across the country are more integrated now than ever. The takeaway from the article is that no one running for President seems willing to make the issue a centerpiece of their campaign and so it is unlikely to be solved unless some billionaires decide to make racial and economic justice their cause. apple.news/AcpfFBC92RjePQvKusOVMOQ

Charter Schools Acknowledge Flaws, Flaws that Prove “No Excuses” Approach to Discipline Fails

July 6, 2019 Comments off

After reading Eliza Shapiro’s article this morning in the NYTimes I came away with the sense that MAYBE the tide is turning against charter schools in NYC and, if so, it could be a harbinger of a shift everywhere. The article’s title, “Why Some of the Country’s Best Urban Schools Face a Reckoning”, is misleading at best. It implies that the charter schools who are facing “a reckoning” are “some of the country’s best urban schools”, which perpetuates the NYTImes narrative that charter schools are better than traditional public schools. The article, though, pulls no punches because the data on charter schools indicted that while many of the charters flagged in the article have trumpeted their successes they have papered over their failures. The first two paragraphs set the stage:

When the charter school movement first burst on to the scene, its founders pledged to transform big urban school districts by offering low-income and minority families something they believed was missing: safe, orderly schools with rigorous academics.

But now, several decades later, as the movement has expanded, questions about whether its leaders were fulfilling their original promise to educate vulnerable children better than neighborhood public schools have mounted.

From there, Ms. Shapiro describes how zero tolerance discipline policies ended up emphasizing conduct at the expense of academics, demonstrates that many of the criticisms leveled against the charter schools were warranted, and indicates that both the Governor of NY and the legislature have resisted any further expansion of charters in NYC because of the deficiencies in the programs. Ms. Shapiro describes the new political reality in this paragraph:

Last month, Gov. Andrew M. Cuomo, a Democrat who has been a crucial supporter of charters, declared that the State Legislature would not lift a cap on the number of new charters issued citywide. By halting charter growth indefinitely, Albany lawmakers have begun to erode the schools’ foothold in the country’s biggest school system.

Will the charter’s loosening foothold in Albany and NYC have an impact on their expansion elsewhere? My belief is that it will except in those parts of the country where charters are unapologetically used to segregate children based on race, religion, and wealth…. and as long as Betsy DeVos has her hand on the tiller and neoliberalism reigns in the Democratic party the resegregation and monetization of public schools will continue and charters will be the vehicle for that trend.

DeVos Adopts Caveat Emptor Approach to Student Debt… Profiteers Smile!

June 29, 2019 Comments off

In an unsurprising “Dog Bites Man” development, Betsy DeVos repealed the Obama era guidelines designed to punish for-profit schools for misleading consumers and replaced them with a set of guidelines designed to provide consumers with more information…. and letting the profiteers off the hook entirely.

NYTimes reporter Erica Green describes it thusly in her article on the topic:

The so-called gainful employment rule was issued by the Obama administration in 2014, right before huge for-profit chains collapsed, leaving students stranded with debt and worthless degrees. Under the new standards, career and certificate programs, many of which operate in the for-profit sector, would have to prove their graduates could find gainful employment to maintain access to federal financial aid. It also would have required schools to disclose in advertisements a comparison of the student debt load of their graduates and their career earnings…

Education Department officials have argued that transparency, not regulation, is the best way to hold all schools — public nonprofits, community colleges and for-profits — accountable for their results. Instead of any accountability measures, it promised to expand an existing database, called the College Scorecard, to provide information on student debt and earnings prospects. The database, which provides information, including loan debt information, for 2,100 certificate granting programs, was unveiled last month.

In short, the USDOE shifted the burden of proof and responsibility from profiteers to consumers… a move that likely foreshadows how the marketplace might work should Ms. DeVos and her libertarian minded charter school advocates have their way with vouchers. The consequence of this shift is described by Ms. Green:

But in rescinding the rule, the department is eradicating the most fearsome accountability measure — the loss of federal aid — for schools that promise to furnish students with specific career skills but fail to prepare them for the job market, leaving taxpayers on the hook to pay back their loans…

Bob Shireman, a senior fellow at the Century Foundation and an architect of the rule when he was in the Obama administration, called the repeal “disturbing and shortsighted.”

They are opening the door to operators whose singular focus on gobbling up federal grants and loans for their investors will steer the business toward manipulative recruiting and poor quality training,” he said.

Meanwhile, the relief for thousands of indebted former students of those schools “…whose singular focus on gobbling up federal grants and loans for their investors” is in limbo as the USDOE delays decisions on how to handle the money they owe to the government:

…Ms. DeVos has moved to overhaul that “borrower-defense” rule as well, hoping to give some students only partial relief. That process has been tied up in court proceedings, leaving more than 150,000 student claims in limbo.

“Borrower Defense” is replaced by “Caveat Emptor” and the businessmen “…whose singular focus on gobbling up federal grants and loans for their investors” are relieved and elated… and the edu-preneurs are getting their ads for charter schools geared up for the day when vouchers expand.

Categories: Uncategorized Tags: ,

WOW! Forbes Reports US Spent TEN TIMES MORE on Fossil Fuel Subsidies Than it Spent on Education

June 26, 2019 Comments off

Forbes magazine, hardly a liberal media outlet, offered an astonishing article by James Ellsmore that provided an overview of a recent report by the International Monetary Fund indicating that the US spent TEN TIMES more on subsidies for fossil fuels than it spent on education! In what can only be characterized as an understatement, Mr. Ellsmore offered this quote:

IMF leader Christine Lagarde has noted that the investments made into fossil fuels could be better spent elsewhere, and could have far reaching positive impacts: “There would be more public spending available to build hospitals, to build roads, to build schools and to support education and health for the people. We believe that removing fossil fuel subsidies is the right way to go.”

Readers of this blog know that while I would very happy to have more money available for public education, I would prefer that money not flow through Washington where the neoliberal and/or free market theories of Mr. Duncan and Ms. DeVos would siphon the funds to profiteers and/or religious schools… but subsidizing costly fossil fuels at the expense of increasingly cheaper renewables is insanity:

Simon Buckle, the head of climate change, biodiversity and water division at the Organization for Economic Co-operation and Development explains: “Subsidies tend to stay in the system and they can become very costly as the cost of new technologies falls. Cost reductions like this were not envisageable even 10 years ago. They have transformed the situation and many renewables are now cost competitive in different locations with coal.”

Buckle’s analysis of the inefficiency of fossil fuel subsidies is illustrated best by the United States’ own expenditure: the $649 billion the US spent on these subsidies in 2015 is more than the country’s defense budget and 10 times the federal spending for education . When read in conjunction with a recent study showing that up to 80% of the United States could in principle be powered by renewables, the amount spent on fossil fuel subsidies seems even more indefensible.

Global warming is the major issue facing our nation… more important than education funding. While having an additional $649 to spend on schools would be wonderful, having to spend that money to relocate schools from low lying areas seems wasteful. It strikes me that a better policy would be to subsidize renewables at the federal level and encourage states and local governments to consider raising more funds for schools through carbon taxes.

Categories: Uncategorized Tags: ,

Foxes Guarding Henhouses in Department of Education

June 17, 2019 Comments off

A few days ago I wrote a post about Pennsylvania’s laws that allowed profiteers to make billions by creating for-profit charter and cyber schools that siphoned taxpayer dollars away from revenue starved public schools. In fairness to the public school profiteers, they were not the only ones taking advantage of a system that rewarded them for converting tax dollars into profit: the post secondary for profit schools led the way…. that is until the Obama administration took some steps to close loopholes and enforce regulations that penalized these bad actors for their pillaging.

But with Betsey DeVos at the helm of the USDOE and Mr. Trump in the White House all-things-Obama are out the window and the profiteers are backing up their wheelbarrows to take advantage of guaranteed loans to attract students to their low cost-high profit enterprises. And who will be overseeing the newly de-regulated procedure for protecting the taxpayers money from being abused? That would be Diane Auer Jones… a former employee of the USDOE who resigned from the George W. Bush administration’s USDOE because she thought THEY were too strict with their accreditation procedures and joined an accrediting agency that was dis-credited by the Obama administration. The whole sordid story was described in a NYTimes article last week by Erica Green, who stuck to the facts which led to an inevitable conclusion: the foxes are now overseeing the henhouse. This paragraph from the middle of Ms. Green’s article summarizes the state of affairs:

Consumer protection advocates see the rules as part of a larger plan to allow Ms. Jones’s allies in the for-profit industry to proliferate and operate with few guardrails. Some of the proposals reflect wish lists that for-profit and career schools have lobbied for in Congress. They throw a safety net to accreditors and programs that have struggled to meet departmental standards.

When legislation cannot be passed to deregulate, the next best thing is to appoint administrators who will “be flexible” in enforcing the regulation and, if necessary, make wholesale changes that have the effect of legislation. Once again, taxpayers should get a firm grip on their wallets! The shareholders of for profit schools are after your money!