Ex-Private Student Loan CEO Leaves Education Dept, Calls For Cancelling Student Loans

Secretary of Education Betsy DeVos speaks during a cabinet meeting in the Cabinet Room of the White House, July 18, 2018 in Washington, DC. Photo by Olivier Douliery/ Abaca Press
Secretary of Education Betsy DeVos speaks during a Cabinet meeting with President Donald Trump on July 18, 2018. (Photo by Olivier Douliery-Pool/Getty Images)
|
October 24, 2019 11:32 a.m.

In a strange twist, a top Education Department official who oversaw federal student loans suddenly resigned on Thursday and proposed a sweeping plan to tackle student debt.

The Wall Street Journal reported that A. Wayne Johnson, appointed by Education Secretary Betsy DeVos to serve as the the chief strategy and transformation officer of the department’s Office of Federal Student Aid, has stepped down and will run for Sen. Johnny Isakson’s (R-GA) seat.

Slamming the student loan system as “fundamentally broken,” Johnson proposed cancelling up to $50,000 in federal student loans for any borrower.

Johnson’s plan is particularly surprising given his former workplace’s repeated efforts to gut student forgiveness programs under DeVos’ leadership. He also served as CEO for several private student loan companies before he began working for the Trump administration.

The former official told the Wall Street Journal that his proposal aims to eliminate the government’s role in providing student loans and provide borrowers with a $50,000 voucher for tuition instead.

Meanwhile, a judge has threatened to hold DeVos in jail for refusing court orders to stop collecting loan payments from students of the for-profit Corinthian Colleges.

Introducing
The TPM Journalism Fund: A New Way To Support TPM
We're launching the TPM Journalism Fund as an additional way for readers and members to support TPM. Every dollar contributed goes toward:
  • -Hiring More Journalists
  • -Providing free memberships to those who cannot afford them
  • -Supporting independent, non-corporate journalism
Are you experiencing financial hardship?
Apply for a free community-supported membership
Comments
advertisement
Masthead Masthead
Founder & Editor-in-Chief:
Executive Editor:
Managing Editor:
Senior Editor:
Special Projects Editor:
Editor at Large:
General Counsel:
Publisher:
Head of Product:
Director of Technology:
Associate Publisher:
Front-End Developer:
Senior Designer:
SPECIAL DEAL FOR PAST TPM MEMBERS
40% OFF AN ANNUAL PRIME MEMBERSHIP
REJOIN FOR JUST $30