Betsy DeVos Raises Fees for Collectors of Student Debt, Including One of Her Former Advisors

(I’m not sure if anyone needs any more evidence of Betsy DeVos’s unscrupulousness, but if someone does, here it is. She sure knows how to help her friends, doesn’t she?)

Diane Ravitch's blog

Betsy DeVos just reversed an Obama administration rule that limited the fees that student debt collectors can charge, and one of the beneficiaries has a direct connection to her. As we are learning, making money is a sign of virtue in DeVos’s world, and the more money, the more virtue.

Americans who default on some of their federal student loans are likely to pay more after Education Secretary Betsy DeVos reversed an Obama administration directive limiting some fees. But it turns out the Trump administration decision has some beneficiaries—including the father of a key DeVos lieutenant who just quit.

DeVos’s decision, announced Thursday in a memorandum to the student loan industry, allows companies known as guaranty agencies to charge distressed student debtors fees equivalent to 16 percent of their total balance, even when borrowers agree within 60 days to make good on their bad debt.

The reversal is almost certain…

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