U.S. Secretary of Education Betsy DeVos is being accused of a new student loan “scheme.”
Here’s what you need to know.
The Accusation
In a series of tweets, The Intercept’s Washington bureau chief Ryan Grim suggested DeVos may have ulterior motives regarding her new student loan plan. Last week, DeVos unveiled a “proposal” that eventually could get the Education Department out of the student lending business.
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 (FSA) – the nation’s largest provider of financial aid – be spun off from the Education Department so student loans can be better managed and administered.
DeVos proposed that FSA should be a standalone government corporation “run by a professional, expert and apolitical Board of Governors.” She believes this would help FSA deliver “world-class service” to students and families. DeVos does not think FSA should report to the Education Department.