search
Sections List
American Journal News

Betsy DeVos refuses to help students ripped off by shady loans

Trump’s secretary of education is actively helping the loan industry rip off students all across the country.

By Oliver Willis - May 16, 2019
Share
Betsy DeVos

The Consumer Financial Protection Bureau (CFPB), a government watchdog agency, revealed that the Betsy DeVos-led Department of Education is obstructing efforts to police the student loan industry, NPR reported on Thursday.

According to NPR, CFPB Director Kathy Kraninger disclosed the Education Department’s strategy in response to an April inquiry from Sen. Elizabeth Warren (D-MA) and other lawmakers, who asked Kraninger about reports that the agency had “abandoned its supervision and enforcement activities” in relation to over $1 trillion in student loans.

Kraninger told Warren DeVos’ department was getting in the way of justice.

“Student loan servicers [at the Department of Education] have declined to produce information requested by the Bureau for supervisory examinations,” Kraninger wrote.

Kraninger also noted that the stonewalling stems from a memo issued by the Department in December 2017, and that the flow of information coming to CFPB has stopped ever since.

“The head of the Consumer Financial Protection Bureau is telling the world that the secretary of education has put in place a series of policies that are obstructing federal law enforcement officials from standing up for the millions of Americans with student debt,” Seth Frotman of the Student Borrower Protection Center told NPR.

Frotman also said that DeVos’ actions are “quite remarkable.” He served as CFPB’s student loan ombudsman until last summer but quit in protest. At that time, he slammed the Trump administration for “turning its back on student borrowers.”

As an example of the sort of situation DeVos’ policies are enabling, NPR spoke to Jessica Saint-Paul, a woman with $80,000 in student loans who was told by the company servicing her loans that after 10 years of consistent payment, the remainder of her balance would be forgiven.

Instead, after 9 years, she found out she was in the wrong plan, and still owed thousands of dollars.

“I just cannot believe this happened to me. That’s like criminal, it’s not right,” she told the outlet.

Thanks to DeVos’ actions, the agencies and regulators who are supposed to be looking out for consumers in similar situations are not doing their jobs.

DeVos is on the side of companies scamming students and has been since she became a part of Trump’s Cabinet. At every turn, she  has worked to undermine students while weighing in on the side of profiteers.

CFPB’s letter exposes yet another way Trump is hurting Americans, with DeVos abusing her position in favor of corporate interests.

Published with permission of The American Independent Foundation.


AJ News
Subscribe to our newsletter.
Read More
Trump White House plans to garnish wages of student loan borrowers

Trump White House plans to garnish wages of student loan borrowers

By Jesse Valentine - April 22, 2025
Frontline Republican governors cheer on Department of Ed closure

Frontline Republican governors cheer on Department of Ed closure

By Jesse Valentine - March 26, 2025
PEN America: Florida removed more library books than any state last year

PEN America: Florida removed more library books than any state last year

By Jay Waagmeester, Florida Phoenix - November 01, 2024
Amid fraught landscape, school districts react differently to transgender sports ban law

Amid fraught landscape, school districts react differently to transgender sports ban law

By Ethan DeWitt, New Hampshire Bulletin - October 04, 2024
Federal judge dismisses challenge to Tennessee law barring K-12 trans kids from restrooms of choice

Federal judge dismisses challenge to Tennessee law barring K-12 trans kids from restrooms of choice

By Anita Wadhwani, Tennessee Lookout - September 27, 2024
NC superintendent candidate Morrow called for mass arrests, enacting Insurrection Act in 2021 video

NC superintendent candidate Morrow called for mass arrests, enacting Insurrection Act in 2021 video

By Galen Bacharier, NC Newsline - August 12, 2024
AJ News
Latest
Trump White House plans to garnish wages of student loan borrowers

Trump White House plans to garnish wages of student loan borrowers

By Jesse Valentine - April 22, 2025
Megadonor embroiled in ethics scandal gave thousands to Winsome Earle-Sears

Megadonor embroiled in ethics scandal gave thousands to Winsome Earle-Sears

By Jesse Valentine - April 21, 2025
“I Was Terrified To Get Pregnant Again After Having to Flee Tennessee for a Life-Saving Abortion”

“I Was Terrified To Get Pregnant Again After Having to Flee Tennessee for a Life-Saving Abortion”

By Bonnie Fuller - April 21, 2025
Goldman Sachs: Trump’s tariffs will lead to job losses

Goldman Sachs: Trump’s tariffs will lead to job losses

By Jesse Valentine - April 17, 2025
Democrats take stand for wrongly deported Maryland man

Democrats take stand for wrongly deported Maryland man

By Jesse Valentine - April 16, 2025
North Carolina law would make it illegal for Democratic AG to sue Trump

North Carolina law would make it illegal for Democratic AG to sue Trump

By Jesse Valentine - April 11, 2025
Older Americans suffer under Republican slash and burn policies

Older Americans suffer under Republican slash and burn policies

By Jesse Valentine - April 09, 2025
Scott Brown got Trump’s tariff plans for New Zealand very wrong

Scott Brown got Trump’s tariff plans for New Zealand very wrong

By Jesse Valentine - April 08, 2025
Trump admin canceled Social Security contracts to punish Maine governor

Trump admin canceled Social Security contracts to punish Maine governor

By Jesse Valentine - April 03, 2025
Senate Republicans vote to eliminate cap on overdraft fees

Senate Republicans vote to eliminate cap on overdraft fees

By Jesse Valentine - April 03, 2025
Forced to carry a dying baby, this Texas mother of four says she didn’t think it could happen to her

Forced to carry a dying baby, this Texas mother of four says she didn’t think it could happen to her

By Bonnie Fuller - March 28, 2025
Despite pleas from women and doctors, Texas may implement even more abortion restrictions

Despite pleas from women and doctors, Texas may implement even more abortion restrictions

By Bonnie Fuller - March 28, 2025
Trump’s antiwar claims don’t hold up in leaked group chat

Trump’s antiwar claims don’t hold up in leaked group chat

By Jesse Valentine - March 28, 2025
Frontline Republican governors cheer on Department of Ed closure

Frontline Republican governors cheer on Department of Ed closure

By Jesse Valentine - March 26, 2025
GOP-led legislatures ramp up abortion restrictions

GOP-led legislatures ramp up abortion restrictions

By Jesse Valentine - March 18, 2025
HHS slashes vaccine research, amplifies misinformation

HHS slashes vaccine research, amplifies misinformation

By Jesse Valentine - March 11, 2025
Senate Republicans scrap consumer protections for payment apps

Senate Republicans scrap consumer protections for payment apps

By Jesse Valentine - March 10, 2025
Rep. Don Bacon admits he voted for Medicaid cuts

Rep. Don Bacon admits he voted for Medicaid cuts

By - February 28, 2025
Trump admin cracks down on affordable weight-loss treatments

Trump admin cracks down on affordable weight-loss treatments

By Jesse Valentine - February 27, 2025
Republican lawmakers are lying about Medicaid fraud

Republican lawmakers are lying about Medicaid fraud

By Jesse Valentine - February 26, 2025
Trump’s education pick: schools may lose funds for teaching Black history

Trump’s education pick: schools may lose funds for teaching Black history

By Jesse Valentine - February 13, 2025
JD Vance defends DOGE staffer who promoted eugenics 

JD Vance defends DOGE staffer who promoted eugenics 

By Jesse Valentine - February 10, 2025