Secretary Cardona Begins to Correct DeVos’s College Loan Policies that Undermined Vulnerable College Students’ Access to Education | janresseger

Secretary Cardona Begins to Correct DeVos’s College Loan Policies that Undermined Vulnerable College Students’ Access to Education | janresseger

Secretary Cardona Begins to Correct DeVos’s College Loan Policies that Undermined Vulnerable College Students’ Access to Education

Education Secretary Miguel Cardona has begun repairing some of the injustice of Betsy DeVos’s policies in the federal college loan program administered by the U.S. Department of Education.

In an extremely significant first step, two weeks ago, Cardona replaced Mark A Brown, who had been appointed by Betsy DeVos in 2019 to oversee the Department’s enormous student loan program. Brown is known to have favored the interests of the for-profit colleges that depend for their existence on tuition derived from student loans. As Brown’s replacement, Cardona has appointed Richard Cordray, a dogged advocate for the students and military veterans who have been preyed upon by for-profit colleges.

The Washington Post‘s Danielle Douglas-Gabriel reports: “Education Secretary Miguel Carrdona… named Richard Cordray, the first director of the Consumer Financial Protection Bureau, to head the federal office that oversees the government’s $1.5 trillion student loan portfolio. Cordray led the bureau’s crackdown on consumer abuses in debt collection, student loan servicing, and for-profit colleges, garnering the respect of advocates and drawing the ire of those industries. His selection signals tougher oversight of the Education Department’s contractors and enforcement of the rules governing federal student aid… During his six-year tenure at the CFPB, which he joined in 2011, Cordray frequently clashed with the financial industry and conservatives over his aggressive regulation. His efforts to weed out poor servicing of student loans and predatory career training schools at times put him at odds with the Education Department… The CFPB under Cordray’s direction brought some of the most high-profile student lending cases in recent years. Among them: a lawsuit against the now-defunct for-profit giant Corinthian Colleges for steering students into private loans that had interest rates as high as 15 percent.”

In a piece for The American Prospect, Robert Kuttner summarizes some of the outrageous CONTINUE READING: Secretary Cardona Begins to Correct DeVos’s College Loan Policies that Undermined Vulnerable College Students’ Access to Education | janresseger

Secretary of Education Joins Senator Warren and Senator Schumer for Discussion With Student Loan Borrowers and Advocates + HBCU Capital Finance Debt | U.S. Department of Education

Secretary of Education Joins Senator Elizabeth Warren and Senator Chuck Schumer for a Roundtable Discussion With Student Loan Borrowers and Advocates | U.S. Department of Education

Secretary of Education Joins Senator Elizabeth Warren and Senator Chuck Schumer for a Roundtable Discussion With Student Loan Borrowers and Advocates

Today, Secretary Cardona joined a roundtable discussion alongside Senate Majority Leader Chuck Schumer and Senator Elizabeth Warren to listen as student loan borrowers and advocates shared their stories about the impact student loan debt has had on their lives. The borrowers and advocates included a veteran father of five who was misled by a for-profit college, a recent college graduate, and a mother whose student loan debt led her to experience homelessness. The Secretary listened, asked questions of the advocates and promised to take the information he learned and the stories he heard back to the Department of Education to inform many of the future decisions regarding student loan debt.

"What I am hearing from you all is not only that there is this cloud hanging over your heads, but also that there is this great emotional impact which has severely interrupted your lives. This burden has created a generational impact of distress," said Secretary of Education Miguel Cardona. "Behind every case, there's a family, there's a person, there's a story. All of you sharing your stories helps to create a picture of what this is. There's work to be done. I'm committed to this, and your stories have strengthened my resolve to do as much as I can to support you and students like you."

Secretary of Education Joins Senator Elizabeth Warren and Senator Chuck Schumer for a Roundtable Discussion With Student Loan Borrowers and Advocates | U.S. Department of Education

Department of Education Discharges Over $1.6 billion in HBCU Capital Finance Debt

The U.S. Department of Education recently discharged approximately $1.6 billion of debt provided to Historically Black Colleges and Universities (HBCUs) that participate in the HBCU Capital Financing Program. This action will provide debt relief to 45 HBCUs – 13 public institutions and 32 private institutions.

"Our HBCUs have long been on an uneven playing field, financially, as compared to many other postsecondary institutions," said Secretary of Education Miguel Cardona. "This relief will further support these mission-critical institutions and help to ensure they have more resources to educate and graduate students during the unprecedented COVID-19 pandemic."

The Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) signed into law in December 2020 provided authority and funding to discharge debts held by HBCUs under the HBCU Capital Financing Program. In combination with funds provided in the American Rescue Plan, signed by President Biden on March 11, 2021, and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), HBCUs will also receive more than $5 billion through the Higher Education Emergency Relief Fund programs.

Since 1994, the HBCU Capital Financing Program has provided low-cost loans to finance and refinance infrastructure improvements at the nation's HBCUs.

Discharging these debts helps enable these institutions to focus their resources on supporting students, faculty, and staff for the duration of the COVID-19 national emergency. HBCUs can dedicate more funds to innovating the academic experience, supporting the socio-emotional development of their students, and continue as the leading producers of Black doctors and teachers during a time when the United States needs them most.

Institutions Receiving HBCU Capital Finance Debt Discharges

• Alabama A&M University
• Allen University
• Alabama State University
• Arkansas Baptist College
• Saint Augustine's University
• Benedict College
• Bennett College
• Bethune–Cookman University
• Barber-Scotia College
• Central State University
• Claflin University
• Clark Atlanta University
• Florida A&M University
• Florida Memorial University
• Grambling State University
• Hampton University
• Harris–Stowe State University
• Huston-Tillotson University
• Jarvis Christian College
• Johnson C. Smith University
• Lane College
• Lawson State Community College
• LeMoyne-Owen College
• Livingstone College
• Meharry Medical College
• Miles College
• Morgan State University
• Morehouse College
• Morehouse School of Medicine
• Philander Smith College
• South Carolina State University
• Shaw University
• Stillman College
• Southern University at Baton Rouge
• Southern University at Shreveport
• Talladega College
• Texas College
• Texas Southern University
• Tuskegee University
• University of the Virgin Islands
• Virginia Union University
• Voorhees College
• Wilberforce University
• Wiley College
• Xavier University of Louisiana

Department of Education Discharges Over $1.6 billion in HBCU Capital Finance Debt

Education Secretary Miguel Cardona Begins to Rectify Injustice in Department’s College Loan Program | janresseger

Education Secretary Miguel Cardona Begins to Rectify Injustice in Department’s College Loan Program | janresseger

Education Secretary Miguel Cardona Begins to Rectify Injustice in Department’s College Loan Program

Last Thursday, March 18, 2021, Education Secretary Miguel Cardona rescinded a policy devised by his predecessor, Betsy DeVos, for processing complaints by students who claimed to have been defrauded by unscrupulous for-profit colleges and trade schools. DeVos’s policy denied debt relief for thousands of students whose complaints were not carefully or fairly considered.

The U.S. Department of Education manages an enormous higher education loan program which has been criticized by borrowers and members of Congress alike—all concerned that under former Education Secretary Betsy DeVos, student borrowers were left unprotected after for-profit colleges and trade schools induced them to take out big loans for shoddy education programs. Because these institutions are highly dependent on federal student loans to cover their operating expenses, they too frequently prey on students and military veterans with fraudulent advertising about the nature and quality of the programs to which they lure students. A federal rule called “the borrower defense to repayment” is supposed to protect students by cancelling their student loans when the students can prove the schools’ promises were fraudulent.

The Washington Post‘s Danielle Douglas-Gabriel explains the significance of Cardona’s action last week: “About 72,000 people will have their federal loans canceled after Education CONTINUE READING: Education Secretary Miguel Cardona Begins to Rectify Injustice in Department’s College Loan Program | janresseger

Biden needs to pursue student loan forgiveness - USA TODAY

Biden needs to pursue student loan forgiveness

Student loan forgiveness: Biden can restore a broken promise

We found a minefield of deceptions by student loan companies and negligent indifference by government officials.

Kelly Finlaw is a middle school art teacher in New York City. Over the last year, she has also been called an “essential employee,” a “frontline worker” and — a term she has certainly never attributed to herself — a “hero.” During this time, she has done everything she could to meet the needs of her students and make remote learning work as well as possible, all the while knowing it is no substitute for being in the classroom with her students.

Yet despite delivering on her promise to educate the next generation of Americans — even in the midst of a pandemic — the federal government has broken its promise to her. Finlaw remains stuck with nearly $90,000 in student debt that should have been canceled years ago.

Finlaw, along with millions of others, was made a simple pledge: If she worked for a decade as an educator, as a nurse or in another public service profession, her student debt would be wiped away. 

The Public Service Loan Forgiveness program 

That was the intent of the federal Public Service Loan Forgiveness program — a bipartisan law that recognized that spiraling student debt burdens are particularly punishing for workers in public service, and that our communities and our country are worse off if this burden drives a generation of students away from careers as educators, healthcare workers, first responders, and other public service workers. CONTINUE READING: Biden needs to pursue student loan forgiveness

Biden Extends Moratorium on Student Debt Collection; Dept. of Ed. Staff Expose DeVos Policies that Favor For-Profit College Sector | janresseger

Biden Extends Moratorium on Student Debt Collection; Dept. of Ed. Staff Expose DeVos Policies that Favor For-Profit College Sector | janresseger

Biden Extends Moratorium on Student Debt Collection; Dept. of Ed. Staff Expose DeVos Policies that Favor For-Profit College Sector

The Biden Department of Education has already begun taking action on higher education policy.

On Student Loan Debt Collection

First, there is positive news for student loan borrowers. As one of his first-day—January 20, 2021—executive orders, President Joseph Biden extended former President Trump’s moratorium on demanding federal student loan repayments through September 30, 2021.

The Washington Post‘s Danielle Douglas-Gabriel reports: “Following a request from President Biden, the Education Department said Wednesday it would extend the suspension of federal student loan payments through Sept. 30. The move arrives days before the moratorium is set to expire at the end of this month.  It makes good on Biden’s pledge to give borrowers some breathing room as the economy struggles to find its footing…  (T)he acting secretary of education said the agency would extend the pause on federal student loan payments and collections and keep the interest rate at 0 percent… With the extension, all borrowers with student loans from the Education Department will see their payments automatically suspended until Sept. 30 without penalty or accrual of interest. Each month until then will still count toward loan forgiveness for borrowers in public-service jobs. It will also count toward student loan rehabilitation, a federal program that erases a default from a person’s credit report after nine consecutive payments.”

Biden’s executive action extending the moratorium on student loan debt collection applies CONTINUE READING: Biden Extends Moratorium on Student Debt Collection; Dept. of Ed. Staff Expose DeVos Policies that Favor For-Profit College Sector | janresseger

Actions Last Week Extend the Student Loan Debt Cliff and Protect DACA | janresseger

Actions Last Week Extend the Student Loan Debt Cliff and Protect DACA | janresseger

Actions Last Week Extend the Student Loan Debt Cliff and Protect DACA

There is a lot to worry about right now—an unhinged President who has given up governing, a divided Congress, a raging pandemic, and, so far at least, Congressional failure to pass an economic relief bill as the COVID-19 recession intensifies.

Two developments last week should, however, be seen as hopeful. Both will protect vulnerable young people through the Presidential transition and into the Biden administration, when it is expected that policies will be revised.

Student Loan Debt Cliff Extended until January 31st to Protect 41 Million Borrowers

Last Friday, Betsy DeVos extended a COVID-19 moratorium on the collection of student loan payments, a moratorium that had been expected to expire on New Years Eve. The moratorium on student loan payments began with the CARES Act and last summer had been extended by President Trump’s executive order until December 31.

Politico‘s Michael Stratford reports: “The Trump administration on Friday granted an extra month of student loan relief to the 41 million Americans who have been benefiting from a freeze on monthly payments and interest that was set to expire at the end of the year. The relief was set to expire on Dec. 31, but will now end on January 31. The last-minute extension averts what could have been a potentially chaotic resumption of payments just weeks before President-elect Joe Biden takes office…  Roughly 33 million of those borrowers have had their payments paused, and the Education Department has stopped seeking to collect from the 8 million other borrowers who were in default.”

Back in November, Stratford warned about the chaos that would happen in January if the CONTINUE READING: Actions Last Week Extend the Student Loan Debt Cliff and Protect DACA | janresseger

CURMUDGUCATION: College Debt Sucks

CURMUDGUCATION: College Debt Sucks

College Debt Sucks

I passed a milestone a couple of months back--I paid off the last of my children's college loans.

I went to college back in the 70s. My entire undergrad education cost about $16K. I could have paid for some of it with the proceeds of my summer job, but my parents covered the costs and that allowed me to save for grad school and to start out on my feet. Lots of my friends from high school worked their way through college and started out life largely debt free; it wasn't that hard a trick to pull off in those long-ago days.

But by the time my older children had graduated from high school in the 00s, the world had changed. Paying for college with summer job proceeds was not remotely feasible. Meanwhile, college costs had gone berserk. My children worked summers and, some years, during the school year. Our deal was that I would pay college costs, and they would cover their own living expenses (their mother kicked in as well). 

Simply procuring and managing the loans was trouble enough. Sometimes it was like when you apply for your first home loan, and the bank treats you like you're a twelve-year old delinquent borrowing money to buy cases of beer. Bad beer. Other times it was simply confusing, as when the loans were sold from one handler to another resulting in a complete change of account numbers and payment amounts. And the phone calls from loan consolidators! Like many college-adjacent industries, these folks try so hard to suggest they are official government entities trying to do you a favor or help you comply with rules you didn't know existed. I can't begin to imagine how many young college students are hoodwinked by this stuff. 

I had advantages as an adult. For instance, I knew better than to pay just the minimum if I could manage more. I had a real job and real income. For over a decade, most of my income went to CONTINUE READING: CURMUDGUCATION: College Debt Sucks

CURMUDGUCATION: Trump Back DeVos On Soaking Scammed Students

CURMUDGUCATION: Trump Back DeVos On Soaking Scammed Students

Trump Back DeVos On Soaking Scammed Students

Trump has mostly ignored DeVos and the education department (insert joke about Trump and education here), but he's now decided to jump in, with both feet, right onto the backs of people scammed by for-profit colleges.

This story has been dragging on for-freakin-ever. In 2017, 18 states and DC sued DeVos over her stated intention of ignoring/rewriting the Borrower Defense to Repayment rule from 2016, which was supposed to help out those students who were being crushed by debt they'd incurred so they could attend fraudulent for-profit colleges. While that dragged on, the department "accidentally" kept collecting debt, in some cases attaching paychecks of students. The "accident" was egregious enough that the court found DeVos and the department in contempt and fined them bigly for ignoring the injunction to stop the collecting.

Judge Sallie Kim was pretty cranky when she offered the October ruling (“I’m not sending anyone to jail yet, but it’s good to know I have that ability.” So she was not any happier in December when it turned out that the department had been collecting-- against the injunction-- from not just 16,000 students, but from over 45,000. So, a more-than-double oopsy.

DeVos has been plenty clear in her feelings about debt relief, siding whole-heartedly the corporate interests. She has thoroughly choked off the public service loan forgiveness program as a prelude to proposing to kill it entirely. Called in before CONTINUE READING: CURMUDGUCATION: Trump Back DeVos On Soaking Scammed Students