Student Union
US Student Loan Servicer Asks to Bow Out
A second company that services student loan debt has asked the United States federal government to be relieved of its contracts.
Navient, based in Wilmington, Delaware, announced Tuesday it had signed an agreement to transfer the loan servicing to Maximus. The deal is subject to the approval of the U.S. Department of Education's office of Federal Student Aid.
"Navient and Maximus are committed to working together and believe this plan gives the government a reliable approach to support borrower success and advance its vision for next-generation servicing," stated Navient in a press release. The companies stated that they expected the deal to be finalized in the fiscal quarter starting Friday.
The deal comes just before student loan repayment resumes in January 2022. The federal government put student loans on hold last year amid the COVID-19 pandemic. Navient services 6 million borrowers.
In July, the Pennsylvania Higher Education Assistance Agency, known as FedLoan to its 8.5 million borrowers, notified the Federal Student Aid office that it would not accept an extension of its 12-year-old federal student loan servicing contract "beyond what is needed to ensure a smooth transition for borrowers," it said in a press release.
Allegations of corruption
U.S. Senator Elizabeth Warren, a Democrat from Massachusetts, has labeled Navient's management of student loan debt as corrupt and predatory.
In April, at Warren's first hearing as chair of the Senate Committee on Banking, Housing and Urban Affairs' Subcommittee on Economic Policy, Navient CEO Jack Remondi denied his company was guilty of those practices.
Student loans have been a political flashpoint among lawmakers and politicians as progressives such as Warren and Vermont Senator Bernie Sanders — both presidential candidates in the 2020 race for the nation's top leadership position — recommend student debt forgiveness. Proponents of student debt forgiveness say it would free student debtors to spend money on other items, such as housing, which would contribute to the economy and improve their quality of life.
Warren introduced a resolution in February that would provide $50,000 in loan forgiveness to individual borrowers and asked President Joe Biden to use executive action to implement it. So far, he has not.
Critics of loan forgiveness, such as borrowers who have paid their loans, argue that student loan debtors should repay the money and fulfill their financial obligations.
Average student loan debt at graduation for the class of 2021 was estimated at $36,140 and carried an average 2.75% interest rate, according to EducationData.org. By comparison, the class of 2010 graduated with an average $29,880 in debt at a 6% interest rate. Collectively, student debt has reached nearly $1.7 trillion nationally.
For further comparison, the average car loan debt for a new vehicle is $34,635, according to Lending Tree, at a 9.46% interest rate. Collectively, auto loan debt has reached nearly $1.4 trillion nationally.
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Trump administration opens antisemitism inquiries at 5 colleges, including Columbia and Berkeley
The Trump administration is opening new investigations into allegations of antisemitism at five U.S. universities including Columbia and the University of California, Berkeley, the Education Department announced Monday.
It's part of President Donald Trump's promise to take a tougher stance against campus antisemitism and deal out harsher penalties than the Biden administration, which settled a flurry of cases with universities in its final weeks. It comes the same day the Justice Department announced a new task force to root out antisemitism on college campuses.
In an order signed last week, Trump called for aggressive action to fight anti-Jewish bias on campuses, including the deportation of foreign students who have participated in pro-Palestinian protests.
Along with Columbia and Berkeley, the department is now investigating the University of Minnesota, Northwestern University and Portland State University. The cases were opened using the department's power to launch its own civil rights reviews, unlike the majority of investigations, which stem from complaints.
Messages seeking comment were left with all five universities.
A statement from the Education Department criticized colleges for tolerating antisemitism after Hamas' Oct. 7, 2023, attack on Israel and a wave of pro-Palestinian protests that followed. It also criticized the Biden administration for negotiating "toothless" resolutions that failed to hold schools accountable.
"Today, the Department is putting universities, colleges, and K-12 schools on notice: this administration will not tolerate continued institutional indifference to the wellbeing of Jewish students on American campuses," said Craig Trainor, the agency's acting assistant secretary for civil rights.
The department didn't provide details about the inquiries or how it decided which schools are being targeted. Presidents of Columbia and Northwestern were among those called to testify on Capitol Hill last year as Republicans sought accountability for allegations of antisemitism. The hearings contributed to the resignation of multiple university presidents, including Columbia's Minouche Shafik.
An October report from House Republicans accused Columbia of failing to punish pro-Palestinian students who took over a campus building, and it called Northwestern's negotiations with student protesters a "stunning capitulation."
House Republicans applauded the new investigations. Representative Tim Walberg, chair of the Education and Workforce Committee, said he was "glad that we finally have an administration who is taking action to protect Jewish students."
Trump's order also calls for a full review of antisemitism complaints filed with the Education Department since Oct. 7, 2023, including pending and resolved cases from the Biden administration. It encourages the Justice Department to take action to enforce civil rights laws.
Last week's order drew backlash from civil rights groups who said it violated First Amendment rights that protect political speech.
The new task force announced Monday includes the Justice and Education departments along with Health and Human Services.
"The Department takes seriously our responsibility to eradicate this hatred wherever it is found," said Leo Terrell, assistant attorney general for civil rights. "The Task Force to Combat Anti-Semitism is the first step in giving life to President Trump's renewed commitment to ending anti-Semitism in our schools."
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STEM, business top subjects for international students
The Times of India breaks down the most popular subjects for international students to study in the U.S.
STEM and business lead the pack. Read the full story here. (January 2025)
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Safety and visa difficulties among misconceptions about US colleges
U.S. News & World report addresses some of the misconceptions about U.S. colleges and universities, including the difficulty of getting a visa.
Read the full story here. (January 2025)
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Work opportunities help draw international students to US schools
US News & World Report details the three top factors in foreign students' decision to study in the U.S. They include research opportunities and the reputation of U.S. degrees. Read the full story here. (December 2024)
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British student talks about her culture shock in Ohio
A British student who did a year abroad at Bowling Green State University in Ohio talks about adjusting to life in America in a TikTok video, Newsweek magazine reports.
Among the biggest surprises? Portion sizes, jaywalking laws and dorm room beds.
Read the full story here. (December 2024)
