Tag: department of education

  • Newswire: Student Loans will now be handled by the U.S. Treasury

    Newswire: Student Loans will now be handled by the U.S. Treasury

    Besides being anti-immigrant, anti-diversity and inherently anti-
    science, the Trump administration has shown time and time again that it is anti-education — because a populace that learns things
    leaves fewer of the “poorly educated” voter who President Donald
    Trump said he loves so much.

    So, the federal government is still in its process of defunding the
    Department of Education, and, on Thursday, the administration
    announced plans to shift the nearly $1.7 trillion student loan
    portfolio to the Treasury Department, claiming its mission is to
    improve the efficiency of the loan system, or what it described as
    “overdue financial discipline.”

    From the New York Times: About half of all undergraduate
    students receive federal aid each year, according to the
    Institute of Education Sciences. More than 40 million
    people currently have federal student loans, including 9.2
    million in default and 2.4 million in late-stage delinquency,
    according to the Education Department.

    “Treasury has the unique experience, the operational
    capability and the financial expertise to bring long
    overdue financial discipline to the program and be better
    stewards of taxpayer dollars,” Treasury Secretary Scott Bessent said in a statement.

    Linda McMahon, the education secretary, said that
    student aid would be better managed at Treasury. A fact
    sheet from the administration promised students would
    receive “the high-quality service they have come to
    expect under the Trump administration.”

    The second McMahon — the education secretary who thinks
    Black history is DEI while being ignorant of even some of the
    most well-known Black history — spoke of “the high-quality
    service they have come to expect under the Trump
    administration,” you have to know we’re being sold a bill of goods.

    The Trump administration doesn’t provide “high-quality” anything
    — certainly, not education-related.

    Instead, Trump has railed about “returning education to the
    states,” as if it would improve the quality of education overall,
    which ignores the glaring fact that states and local governments
    already dictate the academic side of their educational systems,
    including the setting of curricula, teacher hiring, teacher licensing,
    and standardized testing.

    Under Trump’s DOE, far-right groups are overseeing programs to
    “educate” America with thoroughly whitewashed U.S. history
    propaganda disguised as “patriotic” civics lessons. HBCUs have
    lost millions in grant funding, and Black academic institutions and
    programs, in general, have been threatened.

    Any and every program aimed at bettering the quality of
    education for Black people and other marginalized groups has
    been derailed with anti-DEI investigations and threats to withhold federal funding. And, as far as student loans go, all the MAGA-fied DOE has done is attack loan forgiveness initiatives and garnish the wages of borrowers who struggle to pay them back,
    crippling their credit scores.

    “In the midst of a growing affordability crisis where American
    families are already struggling to make ends meet, this risks
    driving millions of borrowers further into financial hardship,” Aissa
    Canchola Bañez, the policy director for Protect Borrowers, a
    group that targets predatory lenders, told the Times. “Instead of
    providing relief to the millions of defaulted borrowers who have
    fallen behind, the department is moving a portfolio of our most
    vulnerable borrowers to an agency with little to no expertise in the
    rights and benefits afforded to borrowers under the Higher
    Education Act.”

    Education is being controlled by an administration that thrives on
    anti-intellectualism and the demonization of institutions of
    learning, and it shows with every new policy change.