Thursday, April 9, 2015

The Secretary's General Authority and the Department of Education's Orientation

Here are a few quick points of the day:

The Secretary of the Department of Education has the general authority to make swift changes, but he won't. Why won't he make swift changes to help students and borrowers? It's about the Department of Education's overall orientation. They will do anything to protect lenders and schools. That is their clientele. The students are not their clientele. Period. 

Perhaps if their orientation were to shift, we'd actually see some changes. Until that time, we're not going to see much in terms of positive outcome for students and current borrowers. (I am still amazed that Bob Shireman was able to implement IBR).  


Anonymous said...

But, but, I thought educational lending existed for the good of the borrowers!

I guess once you observe that the interest rate was supposed to be a big money-maker for the federal government, you know that educational lending was never being undertaken for the good of student borrowers.

And once you observe that schools have been allowed to set the price anywhere they want via uncapped loans with no risk to them, you know student lending was never been undertaken for the good of borrowers.

With friends like the Department of Education and the higher educational industry you definitely do not need enemies.

Anonymous said...

So one person could save millions... But he chooses not to? This makes my blood boil.

Anonymous said...

Gov has posted huge losses when it took over lending from private banks that abondoned the market: can's squeeze blood from a stone.

The gov is there to take the losses of the lenders and educators.

Anonymous said...

also, duncan (sole qualification is Obama's b-ball buddy) is mostly concerned with turning the K-12 system to private business (public funding). If anyone is thinking about being a teacher, think again. Not only have there been several hundred thousand layoffs, the rest will be fired through junk science testing.