Foxx Chalks Up Biden Admin’s Flip-Flop on Third-Party Servicer Guidance to Failure in Planning
WASHINGTON, D.C., April 12, 2023
Today, Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) responded to the Department of Education’s blog post announcing a delay of the effective date of its guidance for third-party servicers. This guidance has garnered significant pushback from businesses and postsecondary institutions given it will lead to increased regulatory hurdles and skyrocketing administrative costs and hinder opportunities for students to access an education.
“There is something seriously wrong with the Department of Education’s operations if it must issue a blog post to clarify a guidance letter, said Chairwoman Foxx. “It demonstrates incompetency, poor planning, a failure to think through the serious implications of its proposal, a lack of respect for the concerns of postsecondary institutions, and tone-deafness to private businesses and students. I urge the Department of Education to put an end to this informal policy making charade and stop giving the American people whiplash with changes to this half-baked proposal that does more harm than good.”
Last week, via Inside Higher Ed, Chairwoman Foxx published an op-ed to highlight the impact that the Department of Education’s disastrous policy change for third-party servicers will have on companies, colleges, and students.