Read time: 2 minutes

Betsy DeVos Claims To Want 'Apolitical' Agency For Federal Student Loans

Beware of wealthy Trump appointees who only want to "help."

Education Secretary Betsy DeVos is very, very mad that politicians have a say in how she handles student loans, and now she's calling for the loans to be spun off into its own federal agency. She is sick of “the ever-changing political whims of Washington,” and “cannot fulfill its mission” in its current form. (Really, she wants it privatized, so her family can make even more money off them!) Via the New York Times:

“I’m not so sure the federal government should monopolize student lending,” she said in a speech at the start of a four-day training conference in Reno for 5,000 financial aid officers from schools nationwide. “But if it does — and, for now, it essentially does — then it must provide services on par with world-class financial firms.”

The Department of Education has for years drawn criticism from government auditors and lawmakers of both parties for its slipshod management of the vendors it hires to service its ballooning portfolio of loans. But Ms. DeVos has faced especially intense disapproval from borrowers and their advocates.

During her tenure, a program to relieve the debts of teachers, police officers and others who work in public-service jobs has become a bureaucratic disaster, rejecting nearly all who apply. The department allowed a troubled for-profit chain, Dream Center Education Holdings, to collect millions of dollars in federal funds that it was ineligible to receive before it collapsed this year.

And a federal judge recently held Ms. DeVos in contempt of court for illegally collecting on the debts of thousands of students defrauded by another, defunct for-profit chain of colleges. (In a court filing on Monday, the department said it had incorrectly tried to bill 45,000 borrowers, nearly three times the number it had previously acknowledged.)

Oh, Ryan. Such a cynic! He went on to say:

"My read is that if Trump does this through executive order it can be undone by executive order. As long as Democrats don’t pass it into law, she can’t make it permanent. Needless (?) to say the DeVos family is heavily invested in the student loan industry and this is just flat out corruption."

Can you help us out?

For 17 years we have been exposing Washington lies and untangling media deceit, but now Facebook is drowning us in an ocean of right wing lies. Please give a one-time or recurring donation, or buy a year's subscription for an ad-free experience. Thank you.

More C&L Coverage


New Commenting System

Our comments are now powered by Insticator. In order to comment you will need to create an Insticator account. The process is quick and simple. Please note that the ability to comment with a C&L site account is no longer available.

We welcome relevant, respectful comments. Any comments that are sexist or in any other way deemed hateful by our staff will be deleted and constitute grounds for a ban from posting on the site. Please refer to our Terms of Service (revised 3/17/2016) for information on our posting policy.

Please Do Not Use the Login Link at the Top of the Site.

In order to comment you must use an Insticator account. To register an account, enter your comment and click the post button. A dialog will then appear allowing you create your account.

We will be retiring our Crooks and Liars user account system in January, 2021.

Thank you.
C&L Team