Tag Archives: Betsy Devos

Betsy DeVos Is Hellbent on Making Your Student Loans Even Harder to Pay Back

Oh Betsy DeVos, you terrible person you. As the nation’s attention is squarely focused on the Donald Trump-Russia investigations, it seems like the rest of the administration is trying to get away with destroying as many government programs as it can, without people noticing. Enter the Cruella DeVil of the education system, secretary of education Betsy DeVos. DeVos has already made quick work, getting rid of Obama-era protections for student loan borrowers, but she wasn’t content to just stop there. No, DeVos, a woman who admitted to having no personal experience with loans of pretty much any kind, is doing her damnedest to make sure you struggle to pay back your college loans.

 

As part of its plan to slash the Department of Education’s budget by some $10.6 billion, the Washington Post reports that the White House will propose ending the federal student loan forgiveness program for public sector and nonprofit workers, and lengthen the amount of time Americans will have to spend repaying their debts on income-based plans if they borrowed to get an advanced degree.

As it stands right now, if you work for the government or a non-profit for 10 years, you can have your student loans forgiven. Under this new budget that will disappear entirely. But that’s not all, the new plan also will make changes to the income-based repayment system. The current system requires that people who borrowed for undergraduate degrees spend 10 percent of their disposable income on their loans for 20 years to have the balance forgiven and for 25 years for a graduate degree. The new plan will up that 10 percent to 12.5 percent, but shorten the time down to 15 years for undergrads. It will lengthen the time for grad students to 30 years.

 

The major takeaway here? Things are going to get slightly harder, and though you will be able to get out from under your loan slightly faster under the undergraduate plan, it will come at a higher cost. And all decided by the woman who had this exchange with Elizabeth Warren during her confirmation hearing:

WARREN: Have you ever managed or overseen a trillion dollar loan program.

DEVOS: I have not.

WARREN: How about a billion dollar loan program?

DEVOS: I have not.

WARREN: Okay. So no experience managing a program like this. How about participating in one? I think it is important for the person who is in charge of our financial aid programs to understand what it is like for students and their families who are struggling to pay for college. Mrs. DeVos, have you ever taken out a student loan from the federal government to help pay for college?

DEVOS: I have not.

WARREN: Have any of your children had to borrow money in order to go to college?

DEVOS: They have been fortunate not to.

WARREN: Have you had any personal experience with a Pell Grant?

DEVOS: Not personal experience, but certainly friends and students with whom I have worked.

WARREN: So you have no personal experience with college financial aid or management of higher education.

You know what they say. Those who can’t do, control the budget and financial aid packages of millions of Americans.

Source:

http://www.gq.com/story/betsy-devos-student-loan-programs

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