Betsy DeVos, the Wicked Witch of the Midwest, was perhaps the most despised member of President Trump's cabinet. As Trump's Education Secretary, she coddled the for-profit college industry and (in my opinion) bungled the Public Service Loan Forgiveness (PSLF) program.
Nevertheless, in a speech delivered in November 2018, DeVos revealed to the nation just how totally screwed up the federal student loan program really is. She deserves some credit for that.
Here's what DeVos said:
- The federal government holds $1.5 trillion in outstanding student loans, one-third of all national assets.
- Only one in four federal student-loan borrowers were paying down the principal and interest on their debt.
- Twenty percent of all federal student loans were delinquent or in default, which was seven times the delinquency rate on credit card debt.
- The debt level of individual borrowers had ballooned between 2010 and 2018 because students were borrowing substantially more money.
- The federal government's portfolio of outstanding student loans constituted 10 percent of our nation's total national debt.