• Celebrity
    • Of The Essence
    • Celebrity News
    • If Not For My Girls
    • The State Of R&B
    • Time Of Essence
  • Fashion
    • 2023 Best In Black Fashion Awards
    • 2023 Fashion House
    • Red Carpet
    • Fashion News
    • Accessories
  • Beauty
    • Girls United: Beautiful Possibilities
    • 2023 Best In Black Beauty
    • Skin
    • Makeup
    • Nails
    • Hair
  • Lifestyle
    • Love
    • Parenting
    • Relationships
    • Bridal Bliss
    • Lifestyle News
    • Health & Wellness
    • ESSENCE Eats
    • Travel
    • Food & Drink
  • Entrepreneurship
    • Money & Career
    • SOKO MRKT
  • News
    • Latest News
    • Paint The Polls Black
    • Culture
    • Politics
  • Shopping
    • Essence Holiday Gift Guide 2023
  • Video
  • Events
    • 2023 Fashion House
    • 2023 ESSENCE Festival Of Culture
    • 2023 Wellness House
    • 2023 Black Women In Hollywood
    • 2023 ESSENCE Film Festival
    • 2023 HOLLYWOOD HOUSE
  • Studios
  • Girls United

WHERE BLACK CULTURE, COMMUNITY AND CONSCIOUSNESS MEET

Sign up for ESSENCE Newsletters the keep the Black women at the forefront of conversation.

Your email is required.
Your email is in invalid format.
Confirm email is required.
Email did not match.
Select the newsletters you'd like to receive:
Please select at least one option.
By clicking Subscribe Now, you agree to our Terms of Use and Privacy Policy.
Skip to content
SUBSCRIBE
  • MAGAZINE
  • NEWSLETTER
  • Celebrity
    • Of The Essence
    • Celebrity News
    • If Not For My Girls
    • The State Of R&B
    • Time Of Essence
  • Fashion
    • 2023 Best In Black Fashion Awards
    • 2023 Fashion House
    • Red Carpet
    • Fashion News
    • Accessories
  • Beauty
    • Girls United: Beautiful Possibilities
    • 2023 Best In Black Beauty
    • Skin
    • Makeup
    • Nails
    • Hair
      • Hair News
      • Natural
      • Relaxed
      • Transitioning
      • Weave
      • 4C
  • Lifestyle
    • Love
    • Parenting
    • Relationships
    • Bridal Bliss
    • Lifestyle News
    • Health & Wellness
    • ESSENCE Eats
    • Travel
    • Food & Drink
  • Entrepreneurship
    • Money & Career
    • SOKO MRKT
  • News
    • Latest News
    • Paint The Polls Black
    • Culture
    • Politics
  • Shopping
    • Essence Holiday Gift Guide 2023
  • Video
  • Events
    • 2023 Fashion House
    • 2023 ESSENCE Festival Of Culture
    • 2023 Wellness House
    • 2023 Black Women In Hollywood
    • 2023 ESSENCE Film Festival
    • 2023 HOLLYWOOD HOUSE
  • Studios
  • Girls United
Home • News

Democrats Fear Education Secretary Betsy DeVos Will Undo Obama's College Financial Aid Reforms

Nearly two dozen state attorneys general have written to the U. S. Secretary of Education decrying her decision to end the Education Department’s work on reforming loan servicing. 
Democrats Fear Education Secretary Betsy DeVos Will Undo Obama’s College Financial Aid Reforms
Andrew Harrer
By Reuters · Updated October 26, 2020

This article originally appeared on Fortune. 

5211629469001

U.S. Education Secretary Betsy DeVos has been reworking student lending since her appointment in February, raising concerns among Democrats that she will undo former President Barack Obama’s overhaul of college financial aid.

On Monday, 21 state attorneys general, all Democrats, wrote to Republican DeVos decrying her decision to end the Education Department’s work on reforming loan servicing, steps intended to ensure that borrowers understand their outstanding debt and repayment options.

“We should be looking for ways to ease the burden of student debt, not enabling the student loan servicing industry to manipulate and exploit students,” New York Attorney General Eric Schneiderman said in a statement.

Under Democrat Obama, much of the $1.3 trillion business of student lending was moved from banks and other companies to the federal government. Four companies still handle servicing theloans. Last year the department began working on restrictions as well as incentives to ensure those servicers follow the law.

Subscribe to our daily newsletter for the latest in hair, beauty, style and celebrity news.

In March, the Consumer Federation of America reported that $137 billion in student loans were in default.

In an April 11 memo announcing she was stopping reform efforts, DeVos, appointed by President Donald Trump, wrote the process had been riddled with “moving deadlines, changing requirements and a lack of consistent objectives.”

“We now find ourselves in a situation where we must promptly address not only these shortcomings but also any other issues that may impede our ability to ensure borrowers do not experience deficiencies in service,” DeVos wrote, according to a version published on the department website.

The department did not immediately respond to a request for comment on the letter from the attorneys general.

The head of the Democratic National Committee, former Labor Secretary Tom Perez, said DeVos’ decision was intended to boost the profits of big corporations and counteract Obama’s reforms.

Republicans say the U.S. government should get out of the business of making student loans.

In January, the Consumer Financial Protection Bureau sued the largest loan servicer, Navient Corp, over allegations it cheated borrowers by deceiving them about repayment options and their rights.

Illinois and Washington also sued the company, which was spun off of Sallie Mae in 2014.

Navient said the bureau, created under Obama to protect people from fraud, sued because it would not settle a CFPB investigation right before Trump took office. The U.S. Department of Justice sanctioned Navient in 2014 for giving military members wrong information about their loans.

COMPANY INFORMATION
  • Our Company
  • Customer Service
  • Essence Ventures
  • Change Your Address
  • Contact Us
  • Job Opportunities
  • Internships
  • Media Kit
  • tag
SUBSCRIBE
  • Newsletters
  • Give a Gift of ESSENCE
  • Magazine Tablet Edition
FOLLOW US
MORE ON ESSENCE
  • Home
  • Love
  • Celebrity
  • Beauty
  • Hair
  • Fashion
  • ESSENCE festival

ESSENCE.com is part of ESSENCE Communications, Inc.

Essence may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.

©2023 ESSENCE Communications Inc. All Rights Reserved. | Privacy Policy | Terms of Use | Essence.com Advertising Terms

Get The ESSENCE Newsletter and
Special Offers delivered to your inbox

By clicking Sign Up, you agree to our Terms of Use and Privacy Policy.

Get The ESSENCE Magazine
by subscribing below
subscribe now