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COMMENTARY: Education Department helps loan servicers instead of borrowers

NNPA NEWSWIRE — …a newly-released audit report finds fault with how the Department of Education (Department) is managing both its loan funds and its 15 contract student loan servicers. According to an Office of Inspector General (OIG) report released on February 12, “borrowers might not have been protected from poor services, and taxpayers might not have been protected from improper payments.”

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By Charlene Crowell, NNPA Newswire Contributor

In an increasingly competitive global economy, highly skilled workers have a sharp advantage in securing and keeping employment. And as technological advances result in life-long learning in many occupations, many worker-students turn to federal student aid, the largest source of funding for higher education, to expand and/or hone their value in the marketplace.

But a newly-released audit report finds fault with how the Department of Education (Department) is managing both its loan funds and its 15 contract student loan servicers. According to an Office of Inspector General (OIG) report released on February 12, “borrowers might not have been protected from poor services, and taxpayers might not have been protected from improper payments.”

That statement covers a range of student loan concerns and include loan payments, loan consolidation, principal and interest payments and repayment options like income-driven repayment plans and forbearance. But its content takes direct aim at the Federal Student Aid (AID) division of the Department, charged with being a thrifty steward of the billions of dollars dedicated to higher education.

Could it be that the current student loan crisis is facing the same threat today that was rampant a decade ago during the mortgage crisis? Are borrowers’ payments being properly applied? Or are unchecked and unaccountable loan servicers bilking consumers into unwarranted costs and payments?

I’m betting that the 44 million borrowers who together owe more than $1.4 trillion in student loan debt seriously want to know.

“FSA’s not holding servicers accountable could lead to servicers being paid more than they should be (the contracts with servicers allow FSA to recover amounts paid for loans not serviced in compliance with requirements),” states the report.

“FSA management rarely used available contract accountability provisions to hold servicers accountable for instances of noncompliance,” continued the report. “By not holding servicers accountable for instances of noncompliance with Federal loan servicing requirements, FSA did not provide servicers with an incentive to take actions to mitigate the risk of continued servicer noncompliance that could harm students.”

According to OIG, all student loan servicer contracts are supposed to be awarded on the basis of performance measures in five weighted areas.  Two factors, borrower satisfaction and the percentage of borrowers who were not more than five days delinquent, together account for up to 60 of the contractors overall score. Servicers are also evaluated on the percentage of borrowers whose loans were more than 90 days late but less than 271, and a percentage who were more than 270 days delinquent but less than 361, and an FSA employee satisfaction survey.

Although the Department has 15 student loan servicer contracts, four were the biggest beneficiaries during the OIG’s audit period. As of September 30, 2017, federal student loan debt was $1.147 trillion with 93 percent of those loans assigned to PHEAA ($319 billion), Great Lakes ($236 billion), Navient ($215 billion), and Nelnet ($180 billion).

In February 2017, the Consumer Financial Protection Bureau (CFPB) sued Navient Corporation and two of its subsidiaries for allegedly using shortcuts and deception to illegally cheat 12 million borrowers out of their rights to lower loan repayments. These practices, according to CFPB, led to an additional $4 billion in borrower costs.

Much of the unnecessary costs were the result of Navient’s widespread use of forbearance that boosted corporate profits by minimizing time spent advising distressed borrowers. For example, three-years of deferment on $30,000 in student loans would cost a borrower an additional $6,742.

Navient also had another dubious distinction. In 2017, more consumers filed complaints about Navient than any other student loan servicer. Complainants identified dealing with the servicer or lender as the key issue, compared to only 34 percent whose problems were based on an inability to pay their loans.

“The Inspector General’s damning revelations that the Department of Education failed to track all instances of non-compliance or to hold servicers accountable for errors demonstrates its lack of commitment to protecting student loan borrowers,”, said Persis Yu, director of the National Consumer Law Center’s Student Loan Borrower Assistance Project. “Unfortunately, this revelation is consistent with the Department’s prior actions, which have repeatedly put the interests of big business ahead of the interests of student loan borrowers.

Many consumer advocates would agree with the Trump Administration’s mounting actions that favor businesses before consumers. The recently-announced rule reversal on payday loans is another example. In 2018, guidance that protected people of color from discrimination in auto loan financing is yet another.

“Policies and practices must assure student success while minimizing costly debt errors that become unnecessary burdens,” said Whitney Barkley-Denney, a policy counsel with the Center for Responsible Lending.

“In this past year, Department of Education has justified its aggressive steps to shield student loan servicers from liability by claiming that it rigorously oversees its servicers,” added Yu. “This report from the Inspector General demonstrates that claim is false.”

Charlene Crowell is the Center for Responsible Lending’s communications deputy director. She can be reached at Charlene.crowell@responsiblelending.org

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Remembering George Floyd

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OP-ED: Oregon Bill Threatens the Future of Black Owned Newspapers and Community Journalism

BLACKPRESSUSA NEWSWIRE — Nearly half of Oregon’s media outlets are now owned by national conglomerates with no lasting investment in local communities. According to an OPB analysis, Oregon has lost more than 90 news jobs (and counting) in the past five years. These were reporters, editors and photographers covering school boards, investigating corruption and telling community stories, until their jobs were cut by out-of-state corporations.

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By Dr. Benjamin F. Chavis, Jr.
President and CEO, National Newspaper Publishers Association

For decades, The Skanner newspaper in Portland, the Portland Observer, and the Portland Medium have served Portland, Oregon’s Black community and others with a vital purpose: to inform, uplift and empower. But legislation now moving through the Oregon Legislature threatens these community news institutions—and others like them.

As President and CEO of the National Newspaper Publishers Association (NNPA), which represents more than 255 Black-owned media outlets across the United States—including historic publications like The Skanner, Portland Observer, and the Portland Medium—l believe that some Oregon lawmakers would do more harm than good for local journalism and community-owned publications they are hoping to protect.

Oregon Senate Bill 686 would require large digital platforms such as Google and Meta to pay for linking to news content. The goal is to bring desperately needed support to local newsrooms. However, the approach, while well-intentioned, puts smaller, community-based publications at a future severe financial risk.

We need to ask – will these payments paid by tech companies benefit the journalists and outlets that need them most? Nearly half of Oregon’s media outlets are now owned by national conglomerates with no lasting investment in local communities. According to an OPB analysis, Oregon has lost more than 90 news jobs (and counting) in the past five years. These were reporters, editors, and photographers covering school boards, investigating corruption, and telling community stories, until their jobs were cut by out-of-state corporations.

Legislation that sends money to these national conglomerate owners—without the right safeguards to protect independent and community-based outlets—rewards the forces that caused this inequitable crisis in the first place. A just and inclusive policy must guarantee that support flows to the front lines of local journalism and not to the boardrooms of large national media corporations.

The Black Press exists to fill in the gaps left by larger newsrooms. Our reporters are trusted messengers. Our outlets serve as forums for civic engagement, accountability and cultural pride. We also increasingly rely on our digital platforms to reach our audiences, especially younger generations—where they are.

We are fervently asking Oregon lawmakers to take a step back and engage in meaningful dialogue with those most affected: community publishers, small and independent outlets and the readers we serve. The Skanner, The Portland Observer, and The Portland Medium do not have national corporate parents or large investors. And they, like many smaller, community-trusted outlets, rely on traffic from search engines and social media to boost advertising revenue, drive subscriptions, and raise awareness.

Let’s work together to build a better future for Black-owned newspapers and community journalism that is fair, local,l and representative of all Oregonians.

Dr. Benjamin F. Chavis Jr., President & CEO, National Newspaper Publishers Association

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Hate and Chaos Rise in Trump’s America

BLACKPRESSUSA NEWSWIRE — Tactics ranged from local policy manipulation to threats of violence. The SPLC documented bomb threats at 60 polling places in Georgia, traced to Russian email domains.

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By Stacy M. Brown
Black Press USA Senior National Correspondent

The Southern Poverty Law Center has identified 1,371 hate and antigovernment extremist groups operating across the United States in 2024. In its latest Year in Hate & Extremism report, the SPLC reveals how these groups are embedding themselves in politics and policymaking while targeting marginalized communities through intimidation, disinformation, and violence. “Extremists at all levels of government are using cruelty, chaos, and constant attacks on communities and our democracy to make us feel powerless,” said SPLC President Margaret Huang. The report outlines how hard-right groups aggressively targeted diversity, equity, and inclusion (DEI) initiatives throughout 2024. Figures on the far right falsely framed DEI as a threat to white Americans, with some branding it a form of “white genocide.” After the collapse of Baltimore’s Francis Scott Key Bridge, a former Utah legislator blamed the incident on DEI, posting “DEI = DIE.”

Tactics ranged from local policy manipulation to threats of violence. The SPLC documented bomb threats at 60 polling places in Georgia, traced to Russian email domains. Similar threats hit Jewish institutions and Planet Fitness locations after far-right social media accounts attacked them for trans-inclusive policies. Telegram, which SPLC describes as a hub for hate groups, helped extremists cross-recruit between neo-Nazi, QAnon, and white nationalist spaces. The platform’s lax moderation allowed groups like the Terrorgram Collective—designated terrorists by the U.S. State Department—to thrive. Militia movements were also reorganized, with 50 groups documented in 2024. Many, calling themselves “minutemen,” trained in paramilitary tactics while lobbying local governments for official recognition. These groups shared personnel and ideology with white nationalist organizations.

The manosphere continued to radicalize boys and young men. The Fresh & Fit podcast, now listed as a hate group, promoted misogyny while mocking and attacking Black women. Manosphere influencers used social media algorithms to drive youth toward male-supremacy content. Turning Point USA played a key role in pushing white nationalist rhetoric into mainstream politics. Its leader Charlie Kirk claimed native-born Americans are being replaced by immigrants, while the group advised on Project 2025 and organized Trump campaign events. “We know that these groups build their power by threatening violence, capturing political parties and government, and infesting the mainstream discourse with conspiracy theories,” said Rachel Carroll Rivas, interim director of the SPLC’s Intelligence Project. “By exposing the players, tactics, and code words of the hard right, we hope to dismantle their mythology and inspire people to fight back.”

Click here for the full report or visit http://www.splcenter.org/resources/guides/year-hate-extremism-2024.

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