U.S. Secretary of Education Betsy DeVos has a new plan for student loans—here’s what you need to know:
DeVos unveiled a groundbreaking “proposal” that eventually could get the Education Department out of the student lending business.
At an annual education conference in Reno, DeVos pitched an idea to have your federal student loans managed by a standalone entity that is separate and independent from the Education Department. DeVos recommended that Federal Student Aid - the nation’s largest provider of financial aid - be spun off from the Education Department so student loans can be better managed and administered.
“FSA's mission is to serve students and their families, but its structure is set up to serve politicians and their policies,” DeVos said. “Congress never set up the U.S. Department of Education to be a bank, nor did it define the Secretary of Education as the nation's ‘top banker.’ But that's effectively what Congress expects based on its policies.
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