Betsy DeVos is not praised for running the Department of Education well. In fact, many say she’s been a bit of a train wreck since the moment she began. DeVos has repeatedly shown us that she isn’t as well suited for the position as we had all hoped, yet not all hope is lost. We’ve also seen that she does not share the same sentiments regarding student loan forgiveness programs as her predecessors.
DeVos has with-out-a-doubt been one of President Trump’s most controversial cabinet appointments. Her long-term goal also isn’t very well understood as it seems she is more interested in perpetuating the student debt crisis than fixing it (although we may not be seeing her end goal at this time.
However, this doesn’t mean the Department of Education won’t come around with good news for students and parents still on the hook for student loan debt. DeVos seems to believe that those who took out the debt in the first place are required and obligated to pay it back, whatever the cost.
While we agree this is sensual and makes for a responsible populous, it’s definitely difficult for those who didn’t understand the implications of the debt they were taking out. Many of our clients come to us and had no idea the $60,000 in loans they had corresponded with a $600 loan payment every month.
Today there are over 44 million American’s with student loan debt and a large percentage of these people will at one point default on their student loans.
Programs were set in place by the Obama administration, known as Obama Student Loan Forgiveness, to help borrowers pay down their debt quicker and cheaper.
One of these programs is the Public Service Loan Forgiveness also known as PSLF. The program was designed to forgive the remaining debt of people who spend 10 years working in public service while making monthly payments.
In September, CNBC reported that out of the 30,000 people who applied for the program finally hit the 10-year mark, only 96 people qualified.
We can understand if 10,000 of those that applied didn’t receive forgiveness but less than half a percent of those who applied were accepted, which is truly shocking.
While DeVos has not shut the programs down altogether, nor does she necessarily have the authority to do so, she has figured out others ways to keep forgiveness from occurring.
One of these is putting enough barriers and roadblocks in place to make debt forgiveness impossible for 99.9968 percent of people who were ruled out.
Now it remains to be seen what happens to those who have played by the rules and are now owed forgiveness. We have been here all along witnessing the progression of the industry and the student debt crisis and right now many are at a loss.
It is no surprise that Ms. DeVos is not a fan of the student loan forgiveness programs instated by Obama however, a deal is a deal and many are owed their end of the bargain.
In fact, many are owed much more than their end. They are owed a future free of student loan debt and free of monthly loan payments draining their bank account.
Until the Department of Education releases more information we will all be standing by. We do still suggest that you enroll in a student loan forgiveness program if you qualify as the programs promise forgiveness which is what the students will get one way or another.