Former US Department of Education secretary Betsy DeVos urged Congress to “reject” student loan debt forgiveness requests, a pledge made during the campaign by President-elect Joe Biden.
In what looks like a farewell letter, DeVos offered “final thoughts” about his time at the head of the education department. DeVos, a decades-old advocate for school choice, made his last case as secretary of education to expand federal tax dollars to families that opt for private schools and oppose pardoning the student loan and free college, calling the proposals “wrong”.
“The widespread forgiveness of university debts is not only unfair to most Americans, but also the most regressive of policy proposals – rewarding the richest sector of our workforce at the expense of the poorest,” wrote DeVos in the letter of Monday. obtained by CBS News.
The Department of Education suspended all monthly payments of federal student loans in March amid the coronavirus outbreak and the economic consequences of the pandemic, guaranteeing all borrowers an interest-free grace period. In its $ 900 billion stimulus bill, Congress neglected to extend the program and student loan payments could resume in February.
It is possible that the popular tolerance program will be extended again after President-elect Joe Biden takes office on January 20. When student loan payments are resumed, the Department of Education does not expect a smooth transition. In its 2020 annual report, released on Tuesday, the department said it expects credit officers and the federal government to “face a heavy burden by ‘converting’ millions of borrowers into active payments”. Some of these borrowers, the report warns, will default.
Resolving student loan debt will be an important issue for the Biden government. Mr. Biden has pledged to resolve the student loan crisis, including a proposal to cancel $ 10,000 in debt for students working in national or community service.
Last year, student loan debt hit a historic record, almost $ 1.6 trillion among more than 40 million Americans, making the Department of Education the country’s largest consumer lender, according to the Federal Reserve Bank of New York. About 1 in 5 borrowers are in default, according to the US Department of Education.
DeVos wrote that, under his leadership, the way borrowers borrow and repay loans has been “revolutionized” thanks to simplified services.
“Where there used to be a confusing and frustrating maze of websites, StudentAid.gov is now the only online place for information. Where there used to be dozens of phone numbers, now there is a single 800 number,” wrote DeVos. “Understanding and paying off student loans is becoming easier than ever.”
DeVos did not directly acknowledge the loss of President Trump or referred to Mr. Biden by name in the five-page letter, which was shared with Congressional leadership and members of the House and Senate education committee, as well as members of the subcommittee on Congress appropriation.