By: Jimmy Jacks
Despite Secretary of Education Betsy DeVos’ recent guidance change, student debt collectors have voiced their decision not to exercise their right to apply expensive fees to those who default on their private loans, according to the Pittsburgh Post-Gazette.
Luckily for many college students and their families, all 26 loan companies that serve as middlemen on behalf of the Federal Family Education Loan program have decided to keep with the two month grace period for troubled debtors instituted by the Obama administration.
As long as they come through in the two months time, no additional fees will be applied to the troubled debtors, per the Post-Gazette.
DeVos made the move to solve an ongoing legal battle with the United Student Aid Funds (USAF) and the Obama administration. USAF argued that the Obama administration’s decision for the grace period was illegal and unfairly altered longstanding federal policy.
The Post-Gazette also reports that Democratic leadership, including Sen. Dick Durbin of Illinois and Sen. Elizabeth Warren of Massachusetts, criticized the decision, citing the already tumultuous time American families are having paying back their student loan debts.
They argue that these fees will negatively impact the U.S. economy as well as the struggling families.