Senator Elizabeth Warren (Massachusetts) isn’t messing around when it comes to student loan reform. Senator Delays Confirmation Of President Biden’s Candidacy To Head Higher Education Policy At Department Of Education As A Way Of Bargaining On Promises To Reconsider student loans, Bloomberg and Washington Post reported.
The federal government manages $ 1.6 trillion in student loans. James Kwaal, Biden’s nominee for the position of undersecretary of education and a third-rank official in the Department of Education, will oversee the management of the loan program.
The source said Politico that Warren’s staff are in talks with the White House about “a series of necessary reforms in higher education, including the management of the student loan program.” Warren criticized private companies that manage federal student loans, Navient and the Pennsylvania Higher Education Support Agency.
When Navient CEO John Remondi testified before Congress, Warren called on the federal government to fire the company for what it says is a long-standing abusive and misleading practice towards borrowers. During her interrogation, Senator Remondi noted that a federal audit revealed that Navient is training call center staff to push borrowers towards repayment options that make it difficult for them to pay off their loans. She also said the company also inflated $ 22 million in government fees for managing federal student loans, and Navient refused to return the money.
“The federal government should fire Navient completely,” Warren Remondi said. at the hearing… “And since it happened under your direction, Naviente should fire you.”
Warren and Senate Majority Leader Chuck Schumer also demanded that Biden cancel loans of up to $ 50,000 for borrowers with student debt, although this is not the reason for the delay in Kwaal’s nomination.
During his confirmation hearing, Kvaal promised that redealing student debt would be his top priority. “We see many students whose loans are getting bigger, not smaller, as they struggle to pay off those loans, especially among black students,” he said. Kwaal also supported ways to make college more accessible, including “investing in abolishing public colleges and universities.” [and] Doubling the Pell Grants ”.
But Kvaal did not forgive student loans. “We need to continue to explore ways to alleviate the plight of debt-ridden students while helping current and future students with affordable options,” he said. said…