$1 trillion monopoly: Betsy DeVos will let one company handle all federal student loans

[MelissaB]

$1 trillion monopoly: Betsy DeVos will let one company handle all federal student loans


By Peter A. McKay on May 28, 2017

At a time when borrowers are increasingly struggling to pay off their debts, a new monopoly is coming to federal student loans that could be challenging for the debt-holders and risky for the government.

The Trump administration has put its stamp on a plan to consolidate servicing of more than $1 trillion in federal student loans. Where there used to be nine companies doing it, now there will be just one.

The idea is to save the government money and simplify customer service — goals initially pursued by the Obama administration in what would be one of the largest non-military government contracts. But critics worry that consolidating so much market power in a single servicing company is risky, with echoes of the too-big-to-fail institutions that fueled the 2008 housing crisis.

... snip

Even so, after a slump earlier this year, Navient shares have rallied about 5 percent since the DOE’s announcement in mid-May, suggesting some traders think Navient is the favorite to win the bid for loan servicer. The company is also finalizing acquisition of $6.9 billion in student loans from J.P. Morgan & Chase, which is completing an exit from the student-loan business.

More: https://news.vice.com/story/betsy-devos-will-let-one-company-handle-all-federal-student-loans

The other company mentioned is Nelnet. Does anyone know if DeVos has connections to either of these two?

[liberal N proud]

1. This is why she bought her position.

[Bleacher Creature]

2. There's going to be so much to clean up in 2021 when a new POTUS is sworn-in.

It's going to make Obama's challenge in 2009 look like child's play.

[leftstreet]

3. Even if Trump resigns, dies, gets raptured. Pence

The GOPers will fill out their agenda

[hedda_foil]

6. Unfortunately, much will be be so broken that sort will not be retrievable.

I wonder what the De Vos/Prince family's connection might be to this firm.

[Txbluedog]

4. And which one of her relatives will OWN this company?

[C_U_L8R]

5. Egads. All this corruption

makes me wanna spit

[TheBlackAdder]

7. It'll be like the NJ Gov. Christine Whitman Car Inspection scam.

.

One company was staffed with all of her friends and ex staffers. The question of graft and a fixed bidding system came up. Behold, a second company was formed. It won the state bid, and a couple of months later the second company bought the first company, placing all of her flunkies in charge.


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I would bank on the smaller company, "without any affiliations" winning the bid.

Then, it will buy the connected one that was really the target of the scam.

.