Betsy Devos Repeals Student Loan Protection
April 18, 2017
Current Secretary of Education, Betsy DeVos started her new educations plans with the removal of President Barack Obama’s memos that protected college students that have taken out loans from debt-collectors. The decision was made as of April 11 and DeVos explained her reasoning as being “a lack of consistent objectives,” according to NBC News.
DeVos has given her stance on education since the time President Trump first appointed her as secretary, as she believes that all children should be attending private schools and says public schools “In many cases, they are failing” with over 90 percent of students who attend public. The quality of education is the focus of the new secretary, instead of the economic status of many of America’s students.
Former President Obama made these memos to keep banks from focusing on being reimbursed and was trying to have them focus more so on helping students. Helping students to not view their debts as a life sentence while giving them the best options when it comes to better financial opportunities. A majority of 71 percent of students attending four year universities have taken out loans, according to Student Loan Hero. These memos were meant to help these students to be treated with better quality service.
The students as borrowers will now have to figure out a way to find banks that have their best interest. This includes researching plans that students can be eligible for, keeping records of the loan, and being more skeptical of a debt-collector’s advice. The banks are now more able to keep their best interest as debt collectors.
Many believe that the government is supporting these companies over the students or buyers in general such attorney Adam Minky who says, “borrowers are going to have to work much harder to figure out the best way to repay their loan” but DeVos says she still plans to have debt-collectors swear to give the best customer service.