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Foxx wants to fight student loan debt scammers with Cardona

Presented by AAU: Delivered every Monday by 10 a.m., Weekly Education examines the latest news in education politics and policy.
Oct 10, 2023 View in browser
 

By Bianca Quilantan

Presented by AAU

Rep. Virginia Foxx (R-N.C.) | Francis Chung/POLITICO

PREVENTING STUDENT DEBT SCAMS — House Education and the Workforce Chair Virginia Foxx is urging the Education Department to work together on making sure Student loan borrowers don’t get taken advantage of as repayment is underway.

— Foxx (R-N.C.), in a letter sent to Education Secretary Miguel Cardona on Tuesday, wrote the Student Loan system is complicated for families to navigate, which could make them vulnerable to companies running scams. The companies have been known to be “aggressive,” Foxx said, and use tactics to pressure borrowers into schemes.

— “While student loan borrowers are able to interact at no cost with the loan system, many borrowers don’t know this,” Foxx wrote. “These scammers, seizing on this ignorance, often claim to work on behalf of the Department or the ‘Student Loan Debt Department’ and charge a high fee to ‘help’ borrowers obtain loan forgiveness or pay down their loans.”

— “You and I agree that these companies must be stopped, and I appreciated your willingness to speak with me a few weeks ago about this,” Foxx added. She wants the Cardona to outline what actions has the Department taken since Jan. 20, 2021 to the present to protect against debt relief scams, and what enforcement actions it has taken so far.

— An Education Department spokesperson said the agency will review the letter when it is received. “As the student loan payment pause has ended, we know that scammers may try to defraud and cheat hardworking families,” the spokesperson said. “The Secretary appreciates the Chairwoman’s attention to this important, bipartisan issue. The Biden-Harris Administration continues to take aggressive action every day to protect borrowers, ensure the integrity of the federal student aid programs and safeguard taxpayer dollars.”

— The department has resources available at StudentAid.gov, and regularly works with law enforcement and other federal agencies to investigate and prosecute scammers, according to the agency. The department so far has transmitted more than 8,600 borrower complaints about debt relief scams to other regulators, has started training call center agents to collect data necessary to block scam call carriers, among other strategies to mitigate scams.

IT’S TUESDAY, OCT. 10. WELCOME TO WEEKLY EDUCATION. Have you been scrolling through TikTok or Instagram to find advice on student loan repayment? I’d love to hear from you. Drop me a line at [email protected]. Send tips to my colleagues Mackenzie Wilkes at [email protected], Juan Perez Jr. at [email protected] and Michael Stratford at [email protected]. And follow us on Twitter: @Morning_Edu and @POLITICOPro.

Are you enrolled in Biden’s “SAVE” student loan repayment program? We are examining how the program is impacting borrowers and how much it’s lowering federal loan payments. Help us investigate.

 

A message from AAU:

To boost our global competitiveness and ensure our national security, we must invest in American scientific research. Fully realizing the smart scientific investments in the CHIPS and Science Act positions us as a leader in innovation and drives economic growth. By supporting scientific research, new discoveries, and technological advances, we ensure a brighter future for our nation, creating jobs and addressing critical challenges.

 
Unions

REPORT: AFT SLAMS GOP SCHOOL CLOSURES INVESTIGATION — The American Federation of Teachers on Tuesday unveiled a new report on the House Select Subcommittee on the Coronavirus Pandemic’s investigation into school closures. GOP lawmakers on the panel this Congress have honed in on AFT President Randi Weingarten’s statements at a hearing earlier this year where she testified she had a direct phone number for the former CDC director. They have sought to investigate whether Weingarten and her group had undue influence over the CDC’s reopening guidance.

— The 29-page report tears apart the investigation and accuses the GOP of lacking evidence to support their claims. The committee’s work has “devolved and deteriorated into an extended effort by the Select Subcommittee’s Republican-led Majority to demonize and scapegoat educators and their unions — including most notably, the AFT and its president, Randi Weingarten,” the report said. The union wants the report to “urge the Select Subcommittee to change course” and “find solutions that will help prepare for the next pandemic.”

— AFT’s report said the select subcommittee majority has been unable to prove that Weingarten and the AFT influenced the CDC’s school reopening guidance that was issued in February 2021. A Democratic staff memo found that the CDC “consulted a wide range of stakeholders before AFT was even aware” of the guidance, and AFT received a draft of the guidance seven days after CDC sent complete draft guidance to several other groups for feedback.

— According to the AFT report, two suggestions for modifications were accepted by the CDC: Encouraging schools to provide options for teachers and staff with high-risk conditions, and including a provision that guidance might need to be revised if there are variants.

— Select Subcommittee majority response: “Considering the historic learning losses that American students suffered during the COVID-19 pandemic, it is breathtaking that AFT continues to defend its position of supporting school closures even while schools across the nation were able to safely reopen,” a Select Subcommittee on the Coronavirus Pandemic spokesperson said. “The SSCP continues to follow the facts in its investigation into school closures and will hold those who used personal influence, such as Randi Weingarten, to keep students out of the classroom to account.”

 

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The MINI Q&A

Diego Sánchez, director of policy and strategy at the Presidents' Alliance on Higher Education and Immigration. | Courtesy Photo

DACA IN LIMBO — A federal judge last month ruled against the Deferred Action for Childhood Arrivals, the Obama-era program that prevents the deportation of thousands of immigrants who were brought to the United States as children. The government still cannot process new applications, and many expect the DACA program to face the Supreme Court again.

— There are more than 408,500 undocumented students and more than 141,100 DACA-eligible students in higher education, according to Diego Sánchez, director of policy and strategy at the Presidents' Alliance on Higher Education and Immigration. Your host spoke with Sánchez about the September ruling and the role education leaders should play while the case moves through the courts.

This transcript has been edited for length and clarity.

MORNING EDUCATION: Can you break down how higher education’s role has changed in the fight to preserve DACA?

SÁNCHEZ: A couple of years ago, DACA recipients were mostly students. Now they’re staff members at our institutions, alumni, they’re helping run our campuses as administrators. The landscape has shifted. So it's not just ‘what do we do about the students,’ but it's become even more of a workforce issue now because these students have moved into the workforce.

ME: So what can colleges and universities do to support DACA students and create a renewed sense of urgency to uphold the program this time?

DS: All of the students that are graduating from high school nowadays are no longer eligible for DACA. More than 120,000 students that are graduating each year will no longer benefit from this program.

There's so much that campuses and universities can do and that's one of our focuses. They can communicate with their undocumented population, share information with DACA recipients about how to renew their status or even just simply hosting information sessions about the current status of DACA. A lot of our members provide legal support and mental health services and other resources. Some have adapted their policies to expand eligibility for admissions and financial aid to undocumented students.

ME: What’s next for Congress or the Biden administration or campuses while this shakes out?

DS: I think everyone is anticipating that this case will eventually reach the Supreme Court. But the composition of the Supreme Court is different. We're not expecting to have a positive outcome.

Everyone is just so frustrated. But if Congress does not do its job, then the administration will continue to do what it can. Campuses are going to have to do what they can, not only at the federal level, but also at the local level. In-state tuition — we're actively working on looking for opportunities to expand tuition equity laws in other states. There are a lot of things that can be done at the local level.

 

A message from AAU:

 
HBCUs

THE COMMONWEALTH STRIKES BACK — Virginia Secretary of Education Aimee Guidera, in a letter sent last week, told the Biden administration that Gov. Glenn Youngkin has made “the highest per student investment” in the state’s public historically Black colleges on average compared to any governor since 1994.

— The letter came in response to outreach from Education Secretary Miguel Cardona and Agriculture Secretary Thomas Vilsack that urged 16 governors to shore up funding for land-grant historically Black colleges and universities. The state funding gap for HBCU land-grants compared to their peer land-grant institutions ranged from $172 million to $2.1 billion, according to the departments. Virginia State University has been underfunded by more than $277 million over three decades.

— Guidera blamed “well-documented issues” with the federal education data system that was used in the administration’s analysis. “Based on reliable data from state-maintained finance, accounting, and education systems, the Commonwealth has funded VSU well above Virginia Tech on a per student basis in aggregate, since 1994,” Guidera wrote.

 

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Syllabus

— Heat, High Water, Hurricanes: Schools Are Not Ready for Climate Change: The New York Times

— Primary threats loom over House Republicans as lawmakers again consider school vouchers: The Texas Tribune

— Fentanyl killed their kids at college. Now Colorado schools are changing: The Colorado Sun

— Schools to stay closed, universities delay semester start by week: The Times of Israel

 

A message from AAU:

It’s imperative to prioritize investment in American science. Fully implementing the smart scientific investments in the CHIPS and Science Act would position the U.S. as an innovation leader, fueling economic growth and ensuring our national security. By backing scientific research and technological progress, we secure a brighter future, creating jobs and tackling critical challenges. Prioritizing funding for American science and technology is key to maintaining America's global competitiveness.

 
 

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Bianca Quilantan @biancaquilan

Juan Perez Jr. @PerezJr

Mackenzie Wilkes @macwilkes

 

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