Irvine, California, Nov. 05, 2018 (GLOBE NEWSWIRE) -- A federal judge ordered the Education Department to implement without delay the Obama rule to provide wholesale student debt forgiveness to thousands of victims of predatory practices by some US schools.
U.S. District Judge Randolph Moss directed Education Secretary Betsy DeVos to implement the Borrowers Defense rule, which the official has been adamant against as it only dirties up the water some more while the taxpayers end up holding the empty bag.
Presently, the federal government is the largest lender with around $100 billion of money that can be accessed by cash-strapped students. Some schools have taken advantage by duping students into taking out student loans to earn degrees that will supposedly yield returns when they end up with their dream jobs.
However, it turned out that these schools have no business offering 2-year courses and 4-year courses in the first place. In the end, graduates remained unemployable as no company will take them on because of their dubious credentials. All the while companies like SL Account Management has been helping students afflicted with unsurmountable debts to find ways in which they could help repair their unsecured loans.
The ruling was hailed by consumer groups because it will provide relief to the victims. They also urged the government to take a hardline approach to clamp down on schools that continue to prey on students.
On the other end of the spectrum, conservative groups are claiming that the taxpayers will bear the brunt of the burden if the Education Department is forced to implement the Obama-era rule. This is because most of the student debts that will be forgiven come from public money.
For her part, DeVos has been asking that she be allowed to change the rules and fine-tune the regulations to come up with a win-win solution for everybody. She asked that she will be given until July 2019 for a much better policy.
Among the changes introduced by DeVos is that student loan forgiveness is not automatically given. There are certain conditions to follow before a student can qualify. For instance, if the school had shut down while they were presently enrolled, they will have to pay for their student loans. Another situation is when they have the option to transfer to an authorized school won’t also get student debt relief.
Also, the Education Department will evaluate each of the claims individually so the student debt loan forgiveness won’t be wholesale. That means students may no longer apply for debt relief as a group. This change in policy is intended to protect taxpayers’ money.
Some 160,000 students have filed claims before DeVos’ office as they sought student loan forgiveness. In April this year, 19 states have filed a lawsuit to force the Education Department to implement the ruling. In September, Judge Moss took their side.
Student Debt
The average American student finishes their post-secondary education with loan amounts of $37,000. More students are falling into default with their loans than ever before. Coming out of school only to be instantly in debt is a crippling and stressful way to start the next chapter of life that students have worked so hard to reach. Navigating the maze of loan repayment programs is an overwhelming challenge for those not in the business; that is where SL Account Management comes in. Through their website or LinkedIn, contact the SL Account Management team who fights on behalf of the borrowers to customize a loan repayment that is appropriate and sustainable.
Loan servicers have recently been pushed into the limelight. While not all are out to get their borrowers, some of the large-scale companies have been called out regarding their unethical practices around repayment and assistance. With a company like SL Account Management working on your behalf, you will indeed be looked after and find yourself in a debt repayment plan that is sustainable and customized to fit your current financial situation.
While DeVos, through her spokeswoman Liz Hill, promised to abide by the ruling, she insists that it’s not the best solution to the problem at hand. She will implement the Borrowers Defense, just like what the judge ordered, but it won’t stop her from coming up with a better plan, which she plans to unveil next year.
DeVos’ defeat could be a pyrrhic victory, depending on where you sit. Meanwhile, the country is still grappling with a student loan crisis and no solutions in sight.