The Department Of Education Cuts Off A Student Loan Watchdog

The Department Of Education Cuts Off A Student Loan Watchdog

The letters “CFPB” may not be much more than alphabet soup to your average student loan borrower. They stand for Consumer Financial Protection Bureau, a new-ish federal agency — created in 2011 — with a unique mission and a big effect on student lenders and for-profit colleges accused of defrauding or otherwise mistreating Americans. But the U.S. Education Department has just called a halt to the enforcement collaboration between itself and CFPB. This move leaves 44 million student loan borrowers, owing $1.4 trillion in debt, with potentially less, or at…

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Trump Administration Considers Moving Student Loans from Education Department to Treasury

Trump Administration Considers Moving Student Loans from Education Department to Treasury

The Trump administration is considering moving responsibility for overseeing more than $1 trillion in student debt from the Education Department to the Treasury Department, a switch that would radically change the system that helps 43 million students finance higher education. The potential change surfaced in a scathing resignation memo sent late Tuesday night by James Runcie, the head of the Education Department’s federal student aid program. Mr. Runcie, an Obama-era holdover, was appointed in 2011 and reappointed in 2015. He cut short his term, which was slated to run until…

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Department of Education Seeking Single Servicer for Student Loans

Department of Education Seeking Single Servicer for Student Loans

The Department of Education announced Friday that it would offer a contract to a single servicer to administer federal student loans. Currently, ED contracts with four different servicers to manage its $1.2 trillion student loan portfolio. Education Secretary Betsy DeVos ED released an amended contract solicitation for that future provider on Friday afternoon. “The amendment ensures high quality customer service, maintains all meaningful borrower protections, increases oversight and provides significant savings to tax payers,” James Manning, acting under secretary of education, said in a call with the press on Friday….

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Conservative group urges Betsy DeVos to dismantle federal education department

Conservative group urges Betsy DeVos to dismantle federal education department

We’re still awaiting details on new U.S. Education Secretary Betsy DeVos’ plans for the nation’s public schools, but a report from The Washington Post this week is sure to fire up public education advocates already anxious about the new secretary. According to the Post‘s Emma Brown, a conservative policy organization with deep ties to DeVos and President Trump’s administration is pushing the pair for some big changes in how the nation administers public schools. From the Post: A policy manifesto from an influential conservative group with ties to the Trump administration,…

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Report: Obama Department Of Education Drastically Underestimated Student-Loan Debt

Report: Obama Department Of Education Drastically Underestimated Student-Loan Debt

With the media’s focus on the Inauguration and the new president’s first week in office, a recent Wall Street Journal report has gone little noticed. According to the report, on January 13 (just one week before the outgoing administration up and went), the Obama Department of Education dropped a memorandum confessing that it had “overstated student loan repayment rates at most colleges and trade schools.” The “updated numbers” provided by the Department were analyzed by the Journal’s staff, who found that the new data “revealed that the Department previously had…

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How A ‘Coding Error’ By Obama’s Department Of Education Hurt For-Profit Colleges

How A ‘Coding Error’ By Obama’s Department Of Education Hurt For-Profit Colleges

At the time, the DOE billed the College Scorecard as “the clearest, most accessible, and reliable national data on college cost, graduation, debt, and post-college earnings.” The site compiled data on more than 7,000 schools over a period of 18 years and supplemented information reported by the various schools with tax records and Treasury department statistics to help users distinguish schools on the economic outcomes of graduates. “Americans will now have access to reliable data on every institution of higher education,” said President Obama as he introduced the scorecard during…

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Oopsie! Department of Education cops to massive math error on student loans

Oopsie! Department of Education cops to massive math error on student loans

What a confidence builder, eh? This looks more like a confidence game, though, in support of the Obama administration’s war on for-profit schools. The Wall Street Journal’s editorial board blasts the Department of Education for waiting months to disclose that they had made a huge error on student-loan defaults, even while issuing regulations that hammered for-profit schools on the basis of that error: In early January the department disclosed that it had discovered a “coding error” that incorrectly computed College Scorecard repayment rates—that is, the percentage of borrowers who haven’t…

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Department of Education issues final regulation for postsecondary distance learning courses

Department of Education issues final regulation for postsecondary distance learning courses

The U.S. Department of Education released its final ruling on distance learning regulations that higher education institutions must comply with in order to offer financial aid to students taking such courses. The Higher Education Act requires colleges and universities to receive authorization from the state in which they are physically located in order to offer any type of financial aid to students. But there were no federal regulations for distance learning providers offering courses outside of their residing state, creating challenges such as verification of student identity and gaps in…

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U.S. Department of Education Announces Requirements for New Federal Loan Servicing System

U.S. Department of Education Announces Requirements for New Federal Loan Servicing System

The U.S. Department of Education today announced an important step forward in the Obama Administration’s efforts to strengthen the student loan servicing experience for borrowers. Federal Student Aid issued the next phase of its procurement to acquire a single servicing platform to support the management of loan repayment for the more than 30 million Americans with student loan debt serviced by the Department of Education. The solicitation details the specific requirements the selected contractor must fulfill when developing the servicing platform. “Borrowers deserve access to the right information from their…

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