Betsy DeVos just reversed an Obama administration rule that limited the fees that student debt collectors can charge, and one of the beneficiaries has a direct connection to her. As we are learning, making money is a sign of virtue in DeVos’s world, and the more money, the more virtue.
Americans who default on some of their federal student loans are likely to pay more after Education Secretary Betsy DeVos reversed an Obama administration directive limiting some fees. But it turns out the Trump administration decision has some beneficiaries—including the father of a key DeVos lieutenant who just quit.
DeVos’s decision, announced Thursday in a memorandum to the student loan industry, allows companies known as guaranty agencies to charge distressed student debtors fees equivalent to 16 percent of their total balance, even when borrowers agree within 60 days to make good on their bad debt.
The reversal is almost certain to hand United Student Aid Funds Inc., the nation’s largest guaranty agency, a victory in its two-year legal battle against her department. The fees could translate into an additional $15 million in annual revenue for the company, filings in a related lawsuit suggest. Until Jan. 1, United Student Aid Funds was led by Bill Hansen, who served as Deputy Secretary of Education under President George W. Bush. His son, Taylor Hansen, a former for-profit college lobbyist, was until three days ago one of the few DeVos advisers with professional experience in higher education.
The younger Hansen resigned from the Education Department on Friday, department spokesman Jim Bradshaw said in an e-mail. Hansen couldn’t be immediately reached for comment on his departure.

“Making money is a sign of virtue in DeVos’s world, and the more money, the more virtue.”
Not just in her world, but in the entire world of the Trump administration.
I’m sure that Trump considers this a positive thing on her part.
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Not just Trump world.
The world of Washington, DC.
There are also former Obama administration officials and friends of officials who parlayed their positions and policies into potential windfalls
http://www.politico.com/story/2016/06/former-obama-insiders-seek-administrations-blessing-of-for-profit-college-takeover-224917
The deal was approved by the Department of Ed in December
http://bigstory.ap.org/article/61c1bc8cdbf54fdb840d7df96a5657b7/feds-ok-sale-university-phoenix-parent-if-terms-met
The revolving door is non-partisan.
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That’s a conflict of interest and she should be arrested and removed from any government position.
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ProPublica’s Annie Waldman wrote about the Hansen story. For some unknown reason, she went to the vestige of the Democratic Party, the Center for American Progress, for comment. (CAP worked on Hillary’s campaign and featured Corey Booker at its “Progress Party”.) What follows is the forceful skewering, of the DeVos Department’s actions, by a member of CAP’s management team,”…lack of transparency …raises concerns…We need much more information on how beachhead teams work.”
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Apparently Elizabeth Warren raised the red flag on Hanson in a letter to DeVos. But that letter also mentioned Robert S. Eitel, a former compliance officer at for-profit college operator Bridgepoint Education Inc. Eitel is working at the department. He is a former deputy general counsel at the Education Department from 2006 to 2009, also a critic of federal regulations on for-profit colleges.
In her letter to DeVos, Warren noted that the Consumer Financial Protection Bureau last September ordered Bridgepoint, Eitel’s former employer, to refund $23.5 million to students whom it had deceived into taking out loans that cost more than advertised. Bridgepoint is currently under investigation by the Department of Justice, the Securities and Exchange Commission, and the attorneys general of New York, North Carolina, California and Massachusetts.
Commentary here lightly modified from this source. http://www.upi.com/Top_News/Voices/2017/03/21/Former-lobbyist-with-for-profit-colleges-quits-education-department/1991490120480/
The billionaires are hiring their loyalists and cronies and they will stay. Some will run from their posts because they don’t want to be exposed as “on the take.” Others like DeVos, just doesn’t care.
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This decision is one more nail in the coffin to keep American stupid. Trump loves stupid people and seems to be working to make more of them.
I had to take out a government National Defense loan when I went to school. It actually helped me get through college. Why are Republicans so anxious to make money off of struggling people?
What a way to make American Great Again. Keep taking things away from the populace and one day, even the loyal followers will figure out that tRump isn’t the great savior.
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“…the more money, the more virtue.” Indeed!
She apparently sincerely believes all that Calvinist nonsense about predestination.
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Well — Americans ELECTED Trump. Maybe they DESERVE this kind of thing?
My godmother used to tell me that some people can learn from being shown and instructed — and some people just have to learn by peeing on the electric fence.
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Reblogged this on Mark's Text Terminal.
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There was an alternative to all of this . Perhaps after the Republicans blow up the world economy or the world, we will be ready for it this time. But this time perhaps we can pick people with a track record . That hope and change guy was never who we thought he would be.
My guess is the American people would be as upset with student loan rates being pegged to the 15 note as they would be with medicare for all . Of course the Democrats were not going to allow that guy to run.
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I agree overall. Yet I suspect a Prez HRC might have chosen another smiling backstabber for Secy of Ed. DeVos is so extreme, so straight-up anti-public-services, so brazenly handing favors to cronies, she may actually help open public eyes to the hollow promises of privatization.
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Old but relevant.
THE BLOG 07/17/2015 02:54 pm ET | Updated Jul 17, 2016
Debt Collection Agency Run By Ex-Bush Official & Ex-Corinthian Exec Sues to Pile More Penalties on Broke Students
http://www.huffingtonpost.com/davidhalperin/debt-collection-agency-ru_b_7820326.html
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