Elizabeth Warren: This report’s ‘a stunning indictment’ of the Department of Education

[cal04]

Source: marketwatch

The senator and other Dems slam feds’ oversight of student loan companies

Active duty military members missed out on a key student loan benefit and the government failed to ensure they received it, say Massachusetts Senator Elizabeth Warren and two of her democratic colleagues.

The accusations come after a report released Tuesday by the Department’s Office of the Inspector General found that the Department used a flawed study design to determine whether student loan servicers were denying active duty service members the 6% interest rate cap on their student loans to which they’re entitled, perhaps inaccurately portraying the extent to which servicemembers were denied the benefit.

The Department published a news release on May 26, 2015 based on this analysis, which claimed that service members were incorrectly denied the interest rate cap in less than 1% of cases. That release is “unsupported and inaccurate,” the OIG report found.


“Today’s report is a stunning indictment of the Department of Education’s oversight of student loan servicers, exposing the extraordinary lengths to which the Department will go to protect these companies when they break the law,” Warren said in a statement regarding the report.

Read more: http://www.marketwatch.com/story/elizabeth-warren-calls-this-report-a-stunning-indictment-of-the-department-of-education-2016-03-01

[bemildred]

1. They turned our education system into a corporate racket. nt

[tk2kewl]

2. 6% is still a rip off

[lovuian]

3. this is Obama's administration

this is soooo wrong. Needs to be corrected

[SammyWinstonJack]

4. +1000000. NO WE CAN'T! says Hillary.

[TBF]

5. This administration blew it on education -

this is what happens with privatizing. The whole charter school movement was a give-away as well. All kinds of tax $$$ going to the folks who opened those for-profit centers.

[mountain grammy]

6. Huge K & R

Secretary Arne Duncan vowed to conduct a review of the nation’s four largest student loan servicers over the way they treat service members that could have implications about whether they could continue to service federal student loans. That’s the analysis that the Inspector General announced Tuesday was flawed.

The reasons for the flawed analysis essentially boil down to statistical errors, but the “sham study” as Blumenthal called it in a statement, raises questions about how well the Department is overseeing student loan servicers both in their dealings with service members and other borrowed.

Arne Duncan was a disaster.

[blackspade]

7. "Arne Duncan was a disaster."

+1000

[FairWinds]

8. Corruption is corruption , I don't care who does it . .

that smirking toady Arne Duncan

belongs behind bars.

Veterans For Peace