Education Secretary Betsy DeVos on Tuesday abandoned her plan to overhaul how the federal government collects payments from the nations more than 42 million student loan borrowers after it faced growing resistance from congressional Republicans and Democrats.
The Trump administration announced that it was scrapping plans to award a massive contract to a single company to manage the monthly payments of all student loan borrowers, and said it would come up with a new proposal aimed at improving customer service for student loan payments.
But the plan ran into stiff opposition from industry groups and Capitol Hill. Democrats assailed the proposal, saying it would reduce consumer protections for borrowers and lead to a too-big-to-fail federal contractor. Some Republicans also criticized the plan for reducing competition among student loan servicers.
