SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
"Instead of holding Navient accountable, [the DOE's] student loan bank covered for them. Outrageous, but not surprising," Sen. Warren tweeted on Wednesday. (Photo: Senate Democrats/flickr/cc)
Sen. Elizabeth Warren Calls for Total Overhaul of Student Loan System
'Five simple principles. Everyone in government who is serious about standing up for the tens of millions of student loan borrowers in this country should embrace them.'
Mar 31, 2016
"It's long past time for the Department of Education's bank to clean up its act and start running the student loan program to benefit students--not private companies," declared Sen. Elizabeth Warren on the floor of the U.S. Senate on Wednesday as she announced a plan (pdf) for the Department of Education (DOE) to completely overhaul its student loan servicing system.
"One of the first things that must be done is a total reform of student loan servicing to make sure nothing like the Navient disaster ever, ever happens again."
--Sen. Elizabeth Warren
Earlier this month, the Democrat from Massachusetts roundly condemned the DOE for putting the desires of the student loan industry over the needs of students, referring to a scandal in which the DOE protected one of the country's largest loan companies (Navient, formerly known as Sallie Mae) from repercussions for defrauding U.S. service members.
Warren this week followed up that earlier critique with a detailed, five-point plan for reform.
"When a private company breaks the law and steals from American soldiers who are literally in the field fighting overseas, those companies should be held accountable," Warren argued. "Everyone in government who is serious about standing up for the tens of millions of student loan borrowers in this country should embrace [these reforms]."
\u201cI\u2019ve laid out 5 simple reform fundamentals for @usedgov\u2019s student loan program to clean up its act. #studentdebt\u201d— Elizabeth Warren (@Elizabeth Warren) 1459353297
Warren's plan recommends introducing debt counseling, clearer communication with borrowers, and an escalating complaint process. She tells the DOE to report bad actors to relevant government agencies, decries propping up "too big to fail" student loan companies, and advocates for introducing competition between the student loan giants such as Navient.
The plan also calls on the DOE to publish more data on the opaque federal loan servicing system to disclose to the public how it actually works, and asks the Department to step up aggressive oversight of the student loan industry.
"We shouldn't be running the student loan program to create profits for private companies. We should run it for students," Warren said.
The senator's latest battle with the DOE over student loans was prompted by a report (pdf) last month that "found that the agency conducted a deeply flawed investigation of its student loan servicers--companies like Navient, which collect borrowers' monthly payments--and knowingly misled the public about the findings," as Common Dreams reported.
"The Department of Education's bank decided it was more important to protect Navient than to watch out for our military students," Warren said. "One of the first things that must be done is a total reform of student loan servicing to make sure nothing like the Navient disaster ever, ever happens again."
An Unconstitutional Rampage
Trump and Musk are on an unconstitutional rampage, aiming for virtually every corner of the federal government. These two right-wing billionaires are targeting nurses, scientists, teachers, daycare providers, judges, veterans, air traffic controllers, and nuclear safety inspectors. No one is safe. The food stamps program, Social Security, Medicare, and Medicaid are next. It’s an unprecedented disaster and a five-alarm fire, but there will be a reckoning. The people did not vote for this. The American people do not want this dystopian hellscape that hides behind claims of “efficiency.” Still, in reality, it is all a giveaway to corporate interests and the libertarian dreams of far-right oligarchs like Musk. Common Dreams is playing a vital role by reporting day and night on this orgy of corruption and greed, as well as what everyday people can do to organize and fight back. As a people-powered nonprofit news outlet, we cover issues the corporate media never will, but we can only continue with our readers’ support. |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
"It's long past time for the Department of Education's bank to clean up its act and start running the student loan program to benefit students--not private companies," declared Sen. Elizabeth Warren on the floor of the U.S. Senate on Wednesday as she announced a plan (pdf) for the Department of Education (DOE) to completely overhaul its student loan servicing system.
"One of the first things that must be done is a total reform of student loan servicing to make sure nothing like the Navient disaster ever, ever happens again."
--Sen. Elizabeth Warren
Earlier this month, the Democrat from Massachusetts roundly condemned the DOE for putting the desires of the student loan industry over the needs of students, referring to a scandal in which the DOE protected one of the country's largest loan companies (Navient, formerly known as Sallie Mae) from repercussions for defrauding U.S. service members.
Warren this week followed up that earlier critique with a detailed, five-point plan for reform.
"When a private company breaks the law and steals from American soldiers who are literally in the field fighting overseas, those companies should be held accountable," Warren argued. "Everyone in government who is serious about standing up for the tens of millions of student loan borrowers in this country should embrace [these reforms]."
\u201cI\u2019ve laid out 5 simple reform fundamentals for @usedgov\u2019s student loan program to clean up its act. #studentdebt\u201d— Elizabeth Warren (@Elizabeth Warren) 1459353297
Warren's plan recommends introducing debt counseling, clearer communication with borrowers, and an escalating complaint process. She tells the DOE to report bad actors to relevant government agencies, decries propping up "too big to fail" student loan companies, and advocates for introducing competition between the student loan giants such as Navient.
The plan also calls on the DOE to publish more data on the opaque federal loan servicing system to disclose to the public how it actually works, and asks the Department to step up aggressive oversight of the student loan industry.
"We shouldn't be running the student loan program to create profits for private companies. We should run it for students," Warren said.
The senator's latest battle with the DOE over student loans was prompted by a report (pdf) last month that "found that the agency conducted a deeply flawed investigation of its student loan servicers--companies like Navient, which collect borrowers' monthly payments--and knowingly misled the public about the findings," as Common Dreams reported.
"The Department of Education's bank decided it was more important to protect Navient than to watch out for our military students," Warren said. "One of the first things that must be done is a total reform of student loan servicing to make sure nothing like the Navient disaster ever, ever happens again."
"It's long past time for the Department of Education's bank to clean up its act and start running the student loan program to benefit students--not private companies," declared Sen. Elizabeth Warren on the floor of the U.S. Senate on Wednesday as she announced a plan (pdf) for the Department of Education (DOE) to completely overhaul its student loan servicing system.
"One of the first things that must be done is a total reform of student loan servicing to make sure nothing like the Navient disaster ever, ever happens again."
--Sen. Elizabeth Warren
Earlier this month, the Democrat from Massachusetts roundly condemned the DOE for putting the desires of the student loan industry over the needs of students, referring to a scandal in which the DOE protected one of the country's largest loan companies (Navient, formerly known as Sallie Mae) from repercussions for defrauding U.S. service members.
Warren this week followed up that earlier critique with a detailed, five-point plan for reform.
"When a private company breaks the law and steals from American soldiers who are literally in the field fighting overseas, those companies should be held accountable," Warren argued. "Everyone in government who is serious about standing up for the tens of millions of student loan borrowers in this country should embrace [these reforms]."
\u201cI\u2019ve laid out 5 simple reform fundamentals for @usedgov\u2019s student loan program to clean up its act. #studentdebt\u201d— Elizabeth Warren (@Elizabeth Warren) 1459353297
Warren's plan recommends introducing debt counseling, clearer communication with borrowers, and an escalating complaint process. She tells the DOE to report bad actors to relevant government agencies, decries propping up "too big to fail" student loan companies, and advocates for introducing competition between the student loan giants such as Navient.
The plan also calls on the DOE to publish more data on the opaque federal loan servicing system to disclose to the public how it actually works, and asks the Department to step up aggressive oversight of the student loan industry.
"We shouldn't be running the student loan program to create profits for private companies. We should run it for students," Warren said.
The senator's latest battle with the DOE over student loans was prompted by a report (pdf) last month that "found that the agency conducted a deeply flawed investigation of its student loan servicers--companies like Navient, which collect borrowers' monthly payments--and knowingly misled the public about the findings," as Common Dreams reported.
"The Department of Education's bank decided it was more important to protect Navient than to watch out for our military students," Warren said. "One of the first things that must be done is a total reform of student loan servicing to make sure nothing like the Navient disaster ever, ever happens again."
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.