The Obama administration did a lot to try and reduce the stress of borrowing on students who needed to fund their education. Easing the pain allows lower income people to enter school with less stress.

Of course no one wants to default on a loan but sometimes it happens and the Obama admin put in guidance that stopped debt collectors from charging high fees on those defaults. However, we known Trump seems to give no crap about people with no money and his admin have just lifted those guidances.

The Hill reported:

In a “Dear Colleague” letter, the administration tells agencies that collect on defaulted loan debt to disregard guidance prohibiting them from charging borrowers who default on their payments fees of as much as 16 percent of the loan’s principal and accrued interest.

It also says that the initial guidance handed down by the Obama administration in 2015 should have been subjected to public comment before it was issued.

“The Department thinks that the position set forth in the [Obama administration guidance] would have benefitted from public input on the issues discussed in the [guidance letter],” the Trump administration’s directive reads.
“The department will not require compliance with the interpretations set forth … without providing prior notice and an opportunity for public comment on the issues,” it continues.

source.

Defaults are reportedly on the rise for Student loans. This means more people spiraling into debt with these guidelines lifted!

What do you think?