Apr 13, 2017 12:48 PM EDT
In one fell swoop, education secretary Betsy DeVos withdraws student loan protections provided by the Obama administration. The move is in line with the Trump administration policy of limiting government spending and reducing the burden of paying off loans made by student through the use of taxpayer's money. The changes it to address the $1.1 trillion budget allot for aiding student loan borrows and helping them to pay-off and even discharge them from debt.
The previous administration provided student loan protections to help struggling families pay these debts, though using government aid most of the time. The Obama protections give a bit of security for underprivilege families but adds government spending. The Trump administration vows to end unnecessary spending and thus these protections were summarily undercut.
DeVos said as reported on Bloomberg, that the Obama administration protections are full of shortcomings and it is time for it to be withdrawn. She said that rescinding order is to demonstrate the government's ability to properly appropriate taxpayer's money. Many are weary about the rescinding move of DeVos but the Trump administration are pushing forward policies that will scrutinize financial aid given by the government to debtors.
The new student loan program that will replace the Obama era protection will focus on providing high customer service, increase the accountability and transparency of all borrowers while at the same time, limit the cost to taxpayers. However, many in the student loan industry along with the National Council of Higher Education Resources are trying their best to persuade congress to delay or even alter the changes made by the Education department.
With the drastic changes happening on US policy, here and abroad, many are still holding to their seats as they ride through Trump's revamp and completely replace all defects of the Obama Administration. However, it remains a fact that many are not happy with the sudden changes and the mostly affected are those who, at the moment are not able to pay for the loans and are still struggling to find work outside of college.
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