Skip to toolbar
 
HomeDemocratsHillary Clinton5/19 Hell Breaking Loose at WH, Fmr Clinton Campaign Commun. Director weighs in 2020 POTUS Candidacy, & Evening Open Thread
newest oldest most voted
Notify of
humphrey

Students beware! A monopoly is not a good thing.

http://www.reuters.com/article/us-usa-education-loans-idUSKCN18F29N?il=0&utm_source=twitter&utm_medium=Social

President Donald Trump’s administration will soon offer an exclusive contract that will give one company the right to service billions of dollars of outstanding federal student loans now handled by four companies, officials said on Friday.

The U.S. Education Department, led by Trump pick Betsy DeVos, said the streamlining will save money and increase efficiency. But critics said student borrowers could suffer because a single company would be granted a monopoly, with no incentive to provide better customer service.

The Trump approach would represent one more radical change for the financial aid system that former President Barack Obama overhauled. Under Obama, a Democrat, much of the $1.3 trillion business of student lending was moved from banks and other companies to the federal government.

Four companies still handle servicing the loans. Navient Corp (NAVI.O), which was spun off Sallie Mae (SLM.O) in 2014, is the largest. Its stock rose 23 cents to close at $13.94, after popping to a session high of $14.14 shortly after the announcement. The others are Nelnet Inc. (NNI.N), Great Lakes Educational Loan Services, Inc, and FedLoan Servicing, also called PHEAA. Nelnet’s stock closed down 0.5 percent on Friday.

The Consumer Financial Protection Bureau, a consumer financial watchdog agency, is fighting Navient in court over allegations the company deceived borrowers about repayment options and their rights.

If DeVos is for it pity the students.

polarbear4

Yikes! My Dept of Education loan is serviced by MOHELA, and I don’t see that they are owned by any of the above. I just switched to a REPAYE loan. I hope they don’t take those away. It’s a contract, so they shouldn’t be able to?

Scary!

polarbear4

So Navient will likely get the contract, right, since it’s deceived borrowers.

Obama may have brought them in to the “government” from banks, but he also then farmed the servicing out to private corporations, instead of building up the dept. of ed. to handle them. So now, it’s much easier to continue to “privatize” it. This is a perfect example of making it more expensive by privatizing, not to mention less efficient and much more mean.

I’m going to stop worrying and start thinking good thoughts about this one–this could really blow up in a lot of our faces.

humphrey

I wonder on what grounds the arrest would be made?

polarbear4

One they are considering has to do with breaking bail. Don’t know what Trump is cooking up.

humphrey

Then there is this.

humphrey

Wow!

humphrey

Get your popcorn ready!