Ted Cruz Tried to Slam Elizabeth Warren With a Crack About Spending but It Sounds Like He's Talking About Trump
Senator Elizabeth Warren (D-MA) made waves on Tuesday after announcing that she'd take broad steps to cancel student loan debt for 42 million Americans on the first day of her presidency.
What's more, the former Harvard Law Professor says she doesn't need Congress to do it.
Education Secretary Betsy DeVos got taken to task by a U.S. Magistrate Judge for violating a court order imposed by the same judge in a 2018 ruling.
Judge Sallie Kim ordered DeVos and the Education Department to stop pursuing student loan payments from students of Corinthian Colleges because the for-profit colleges became defunct in 2015.
Betsy DeVos Just Got Seriously Smacked Down In Court Over Her Plan to Delay Obama Era Rules Protecting Student Borrowers
Attorneys General from 19 states and the District of Columbia filed a lawsuit against Betsy DeVos and her Department of Education (DoE) after she ordered delays for student borrower defense rules slated for July 1, 2017. On Wednesday, the federal court ruled against the Trump administration official.
U.S. District Court Judge Randolph Moss ruled in favor of the Attorneys General. In his ruling, he stated:
The Government's Top Student Loan Watchdog Just Resigned in Protest With a Scathing Letter to the Trump Administration
Seth Frotman, student loan ombudsman at the Consumer Financial Protection Bureau (CFPB) submitted a letter of resignation to his boss, Acting Director of the CFPB, Mick Mulvaney. It begins as most resignations would, but quickly veers into an indictment of the motives and mindset of the Trump administration.
"It is with great regret that I tender my resignation as the Consumer Financial Protection Bureau's Student Loan Ombudsman," Frotman begins. "It has been the honor of a lifetime to spend the past seven years working to protect American consumers; first under Holly Petraeus as the Bureau defended America's military families from predatory lenders, for-profit colleges, and other unscrupulous businesses, and most recently leading the Bureau's work on behalf of the 44 million Americans struggling with student loan debt."
Thousands of student loan recipients may not have to pay back their student loan debts––because lenders appear to have lost critical paperwork. Insufficient ownership records (among other missing documentation) have left creditors unable to collect the affected debts in court, according to a New York Times report.
The National Collegiate Student Loan Trusts, one of the nation’s largest owners of private student loans, has struggled to produce ownership records of its loans, which were originally bundled and sold by banks to investorsthrough a process known as securitization. None of these private loans were guaranteed by the federal government. In a recent legal filing, National Collegiate’s lawyers caution, “As news of the servicing issues and the trusts’ inability to produce the documents needed to foreclose on loans spreads, the likelihood of more defaults rises.”
The U.S. Consumer Financial Protection Bureau brought federal suit this month against Navient, the United States’ largest student loan servicer. The CFPB accused the company of “systematically and illegally failing borrowers at every stage of repayment.” The lawsuit seeks restitution for those affected, as well as money penalties.
Students whose families make less than $125,000 a year and have assets worth $300,000 or less, including home equity but excluding anything that they have saved in retirement accounts, won’t have to pay tuition. Students whose families make less than $65,000 also won’t have to pay for room and board, which can run about another $14,100. Scholarships or grants will cover the costs instead, and the school has a $21 billion endowment. The thresholds were previously $100,000 for free tuition and $60,000 for free room and board.