When you have someone with the background, education, and beliefs of Education Secretary Betsy DeVos, you know you're not going to get any policies that benefit education. Sure enough, yesterday she started rolling back reforms begun under the Obama administration that tried to correct the abuses of the student loan industry:
The former president's administration issued a pair of memorandums last year requiring that the government's Federal Student Aid office, which services $1.1 trillion in government-owned student loans, do more to help borrowers manage, or even discharge, their debt.
But in a memorandum to the department's student aid office, DeVos formally withdrew the two Obama memos. The Obama administration's approach, DeVos said, was inconsistent and full of shortcomings. She didn't detail how the moves fell short, and her spokesmen, Jim Bradshaw and Matthew Frendewey, didn't immediately respond to a request for comment.
DeVos' 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, who previously worked under Democratic and Republican administrations during his more than 30 years at the Education Department before retiring as the head of postsecondary education.
It's an absolute scandal that student loans, which are some of the safest investments a bank can make because they can't be discharged in bankruptcy, have high interest rates and a history of predatory collection practices. DeVos has investments in the for-profit education companies that benefit directly from this situation. And people wonder why the Republican Party has a reputation for screwing the disadvantaged in favor of rich businesses.