Showing posts with label Biden administration. Show all posts
Showing posts with label Biden administration. Show all posts

Saturday, July 30, 2022

Biden Administration Flirts With Student-Loan Debtors: Throw Me A Moon Pie, Mister!

 Mardis Gras parades are an ancient tradition in New Orleans, going back to the eighteenth century. Social clubs called krewes sponsor these parades, and krewe members throw trinkets called throws at parade-goers. 

Typically, a throw is a necklace of plastic beads, but krew members also throw toys, small stuffed animals, and plastic souvenir cups. 

Every year, Louisianians flock to New Orleans to attend Mardis Gras parades and gather up the trinkets flung from the parade floats. "Throw me something, mister," is the cry of the day as parade-goers compete for the attention of a krew member preparing to toss a good throw.

Most of the stuff thrown out a Mardis Gras parades is crap. Unadorned necklaces of plastic beads are so worthless that no one even bothers to pick them up. Occasionally, however, a krewe member throws something interesting like a football or a Moon Pie, which is a chocolate-dipped marshmallow sandwich. 

College-loan debtors are much like Mardis Gras parade-goers. The Biden administration dangles various student-loan-forgiveness plans before the electorate while student debtors shout, "Throw me something, mister!"  

We already know that some of President Biden's proposals are almost as worthless as a string of plastic Mardis Gras beads. Ten thousand dollars in loan forgiveness will satisfy no one when annual tuition at a private college runs $60,000 per year, and the average student debt is about 37 grand.

Mr. Biden will almost certainly extend the pause on student-loan payments one more time, probably until after the midterm elections. But that is just another string of plastic beads. Not making loan payments for two and a half years is nice, but these loan-payment pauses do nothing to eliminate the mountains of crushing debt. 

When the midterm election season is over in November, I feel sure that 45 million student debtors will feel much like those Mardis Gras parade-goers who plod back to their cars at the end of the day with sacks of worthless beads and a hangover from drinking too much beer.

Nevertheless, everyone should cheer up. Next year there will be more Mardis Gras parades and more proposals for canceling student debt. Who knows? Maybe the Biden administration will throw you a Moon Pie!


Throw me a Moon Pie, mister!





Friday, June 24, 2022

Biden cancels $6 billion in loans owed by student borrowers who attended more than 100 for-profit colleges

This week, the Biden administration agreed to cancel about $6 billion in student debt, granting relief to 200,000 college borrowers. 

The Department of Education reached a settlement agreement in a class-action lawsuit brought by student borrowers. A federal judge must approve the deal before it goes into effect.

DOE had already determined that more than one hundred for-profit schools had committed fraud or material misrepresentations to some of their students. Students who attended those schools and filed loan forgiveness applications will see their student loans wiped off the books. 

The proposed settlement agreement is especially significant because it involves so many for-profit schools. The rogue's list of defrauders includes the usual suspects: beauty schools, culinary schools, and art institutions.

But DOE's list also includes some prominent for-profit universities. The University of Phoenix, DeVry University, Capella University, and Grand Canyon University made the list.

In addition, DOE concluded that four for-profit law schools made misrepresentations to their students: Arizona Summit Law School, Charlotte School of Law, Florida Coastal Law School, and Western State University College of Law. And at least one medical school, Ross University School of Medicine, got tagged.

Added to the $25 billion student debt forgiven in earlier actions, President Biden's Department of Education has forgiven a total of $29 billion in college loans.

This latest development is just cause for celebration. More than one million students have now gotten some debt relief, which they richly deserve.

Nevertheless, when I look at the list of for-profit schools accused of making fraudulent misrepresentations, I can't help but wonder why the U.S. Department of Education keeps shoveling billions of dollars a year into dodgy for-profit colleges.

Round up the usual suspects.