Betsy DeVos says student loan borrowers have ‘lots of tools’ to pay off debt, and she hopes Biden ‘follows the law’ and chooses not to forgive her


US Secretary of Education Betsy DeVos speaks as Vice President Mike Pence listens during a White House Coronavirus Task Force press briefing on July 8, 2020.Alex Wong/Getty Images

  • Former Education Secretary Betsy DeVos has criticized Biden’s student loan forgiveness plans.

  • She said borrowers have many options for repaying their debt without this relief.

  • The Biden administration has previously criticized DeVos for his handling of student loans.

A former US Education Secretary hopes President Joe Biden will halt his student loan forgiveness plans.

Betsy DeVos, who served in the Department of Education under former President Donald Trump, Told conservative The Daily Signal podcast on Tuesday that she doesn’t believe Trump has the power to write off student debt broadly, and she hopes Biden will “follow the law” and come to the same conclusion.

“When we talk about this notion of forgiving student loans, what we’re really talking about is benefiting those who don’t necessarily need it,” DeVos said. “And the people who will end up paying for it are those who never went to college, who didn’t take student loans, taxpayers who chose not to go to college and take student loans , or frankly, a lot of the taxpayers who left, who faithfully repaid their student loans.”

“And so, it’s a matter of fairness,” DeVos added. “It’s not fair to go and just give massive student loan forgiveness.”

Video: Loans canceled for Corinthian Colleges alumni

Biden would be considering by canceling $10,000 of student debt for federal borrowers earning less than $150,000 a year, and the announcement will likely take place near the date student loan payments are expected to resume after Aug. 31. DeVos’s remarks on student loan relief are similar to those of many Republican lawmakers who have slammed a broad pardon, saying the policy would hurt the economy, cost taxpayers and benefit those who need it least.

DeVos also said that instead of canceling student debt, “there are a whole bunch of different income-based repayment plans” that borrowers can use, along with college dashboards that show costs and potential earnings for a particular field of study.

“So there are a lot of tools that students can use, and I would encourage all students to do that as they do their due diligence,” DeVos said.

Income-driven repayment plans, however, have been flawed for decades. While the idea of ​​the plans is to give borrowers affordable monthly payments based on their income with the promise of loan forgiveness after at least 20 years of repayment, an NPR survey revealed in April that student loan companies were failing to track payments made by borrowers under the plans, steering them off the path to forgiveness.

Biden’s education department has also criticized DeVos’ handling of the student loan portfolio, particularly regarding targeted student loan relief for borrowers defrauded by for-profit schools. The relief, known as the Borrower’s Reimbursement Defence, was supposed to discharge those borrowers’ debt once they submitted a claim, but DeVos ran a huge backlog of these complaints which resulted in a denial rate of 99%.

Despite the Republican pushback, many Democratic lawmakers are keeping up the pressure on Biden to make a big deal out of forgiving student loans for those who struggle the most. New York Representative Alexandria Ocasio-Cortez wrote on Instagram over the weekend that “an arbitrary number” of relief won’t be enough.

“People get addicted to splitting things in half, but there are policies where a halfway approach is kind of a waste because it’s not much better than nothing, and resources are better spent elsewhere,” she said. said. “We are pushing for people to actually experience the benefits of a policy.”

Read the original article at Business Intern


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