The U.S. Department of Education, drawing applause from the Treasury Department, has moved to increase funding for student loan servicers. The goal is to improve customer service for students, according to the administration. The catch? Servicers get the money anyway, whether or not service improves.
The Huffington Post explains the concern, and Senator's Warren's position:
In September, under withering questioning from Warren, a top Education Department official conceded that the companies will get more money regardless of any changes they make to their operations. At the time, the senator was incredulous.
“Let me get this straight: You break the law. You don't follow the rules. You treat the borrowers badly," Warren said of the loan servicers. "And you all just renegotiated the contracts to make sure that across the portfolio, [loan servicers] are going to make a little more money if nothing changes?"
Read the full story here.
Ahhhhhh! Thank Heavens for Elizabeth Warren. It now seems I do have a source for TRUTH, and that source is Elizabeth Warren!
BRAVO!!!
Beverly Smith
So, where is any regulation or oversight? What authority is responsible for allowing this to happen? Who within that ‘authority’ is responsible for allowing this to happen? What influences were brought to bear on these officials urging them to do this? When will these persons be taken to account and punished?
THEN, what will be done to prevent such things from happening again?
When will our administrators and regulators prioritize the people the are supposed to serve, rather than pandering to the moneyed interests?