Student Loans: Betsy DeVos-led education department comes under scanner

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Student Loans: Betsy DeVos-led education department comes under scanner

In a country like the United States where a college education is quite expensive, taking a student loan to cover up the higher education expenses seems like the way to go forward. Not surprisingly, the second-most expensive thing thereafter is perhaps trying to repay the aforementioned student loan.

The previous American government under the president-ship of Barack Obama tried to ensure that the students' interests remained well-protected by ill-intending companies offering such student loans through protocols. However, the current administration has been seen as sympathising towards the interests of these organisations instead of being helpful towards the students.

According to an article published in Politico, the American education secretary, Betsy DeVos has found herself under the harsh glare of the American political class for some of her decision-making, who have cut across party lines to show their displeasure towards her actions.

These actions pertain to her preventing the state law enforcement agencies and authorities from investigating and prosecuting the ill-meaning practices of these companies by seeking to unlawfully add to the burden of the students who have taken up loans.

Earlier in March 2018, DeVos is said to have stated to the Congress that these companies perceived a slight towards them by the country's educational department. However, a couple of months later in July, the American Treasury Secretary Steve Mnuchin presented a report which showed the malpractices which had been carried out by these companies and where the eventual burden fell on the students unwarrantedly.

Recently, in the month of September, the Senate passed a near-unanimous vote along with its funding proposals to put the onus on the education department to come clean about its policy-making when it deems it appropriate to release the required details to the legal authorities.

The department has also been instructed to respond to any requests coming forth within 10 days alongside mentioning the details of the same.