The Trump administration just did something so appalling, and literally millions of Americans will suffer because of it. Who will suffer? Certainly not the unemployed slackers that Republicans complain about endlessly. No, it’s the people who chose to go to college to better themselves.
About 7 million people suffer after Trump withdrew the guideline that says student loan collectors can’t charge former students outrageous fees if they fall behind in payments.
According to The Washington Post:
“The Education Department is ordering guarantee agencies that collect on defaulted debt to disregard a memo former President Barack Obama’s administration issued on the old bank-based federal lending program, known as the Federal Family Education Loan (FFEL) Program. That memo forbid the agencies from charging fees for up to 16 percent of the principal and accrued interest owed on the loans, if the borrower entered the government’s loan rehabilitation program within 60 days of default.”
This will greatly impact the lives of people all across America who truly believed they were doing the right thing for their future when they enrolled in college. The letter sent out by the White House states the following:
Elizabeth Warren also sent out a letter on Monday begging the Department of Education to do something to protect the guideline that President Obama put in place. The letter says that barring the guideline would “result in an unnecessary financial burden on vulnerable borrowers.”
“Congress gave borrowers in default on their federal student loans the one-time opportunity to rehabilitate their loans out of default and re-enter repayment. It is inconsistent with the goal of rehabilitation to return borrowers to repayment with such large fees added.”
American college students of the past and present are already having a tough time paying their loan payments, and many people even stay in school indefinitely just so they never have to pay back that money.
This only adds to the debt that they literally cannot find their way out of. Depression and anxiety are at all time highs, and thanks to President Trump, it’s about to get a lot worse.
Video courtesy of Washington Post: