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Hasan Minhaj Testifies as House Committee Debates Protections for Student Loan Borrowers

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  • The House Financial Services Committee held a hearing on Tuesday to discuss protections for student loan borrowers, as well as other proposals that would ease student loan burdens.
  • Comedian Hasan Minhaj testified during the hearing, noting that two-thirds of jobs require some college experience and that the cost of tuition has exponentially increased since the previous generation.
  • Minhaj also blasted loan providers for “predatory” behaviors like convincing students to take out higher-costing loans.

House Committee Looks at Student Loan Protection Bills

The U.S. House Financial Services Committee listened to testimony in a hearing on Tuesday as they debated nine different potential bills that would afford stronger protections to people taking out student loans. 

Though the committee did not vote on any of the bills, if passed, they would create a borrower bill of rights and would help borrowers buy their first homes. 

Another bill, the CFPB Student Loan Integrity and Transparency Act, would strengthen the Consumer Financial Protection Bureau’s oversight by requiring it and the U.S. Department of Education to share student loan information with each other. It would also force lenders to work with an ombudsman, which is a government advocate for students struggling to repay federal education loans.

The Student Loan Servicing Reform and Consumer Protection Act, another proposed bill, would require lenders to provide accurate repayment options and resources for struggling student borrowers. It would also prevent lenders from omitting or misrepresenting loan serving information and would set minimum industry standards for all student loan transactions.

Currently, U.S. student debt sits at $1.6 trillion dollars, according to Forbes. The business magazine also reports the number of people taking out student loans in the U.S. at just under 45 million. Student loans are the second-highest consumer debt behind mortgages, and 20% of borrowers are behind on their loans.

Lawsuits and student loan providers are not a new combination. Common types of student loan lawsuits involve allegations of lenders convincing students to take out higher-costing payment plans or convincing them to overuse their forbearance, which is a process that allows students to postpone their payments if they’re struggling through other financial issues.

Under U.S. law, Congress sets the repayment terms for loans.

At the hearing yesterday, Chair of the House Financial Services Committee Maxine Waters criticized the current ombudsman, who is a former top official at the Pennsylvania Higher Education Assistance Agency, which is a loan provider that’s been the subject of similar lawsuits and state investigations. 

On the other side of the aisle, Republican Andy Barr blamed Democratic policies for the debt. 

“I know everyone wants a bogeyman,” he said, “and the student loan servicers are a convenient bogeyman, but guess what — look in the mirror Congress. Congress created this crisis.” 

Democrats and Republicans, however, agree that there are serious issues surrounding student borrowers and debt. On Sep. 26, the House Financial Services Committee will discuss debt collection practices.

Hasan Minhaj Testimony 

During the hearing, comedian and host of Patriot Act Hasan Minhaj testified before Congress, saying that even though he himself isn’t in debt, it is a serious issue facing his generation.

“I’m 33, and growing up, it was drilled into our heads: you gotta go to college if you want a middle-class job. And we even tell kids today, ‘Look, if you don’t go to college, you might as well get a face tattoo.’ And then they point to Post Malone, and we’re like, ‘Okay, that’s one guy.’” 

Minhaj also argued that degrees are becoming a basic requirement for most jobs and that the previous generation spent far less on college.

“Two-thirds of all jobs require at least some college,” Netflix’s Patriot Act host said. “This is the standard now, and that wasn’t the case when most members of this committee were in school. And you paid far less for your degrees. That’s not speculation. We looked up where the 60 members of this committee went to college and what your school’s tuition was at that time, even adjusting for inflation, college cost way less across the board.”

Minhaj then went on to say a lot of borrowers are “treated like deadbeats, and he blamed the government for allowing “predatory” for-profit lenders to mislead borrowers. He noted that the Department of Education chooses what lenders a student uses. In turn, he said that means there’s no competition to create better services.

In February, Minhaj reported on student loans in Patriot Act, where he found that his audience, at the time of recording, had a student loan debt of over $6 million dollars.

Minhaj also referenced how desperate some people are becoming by going up to celebrities and asking them to pay off their student debt, a reference to announcements that both Taylor Swift and Lil Uzi Vert would both be paying off a few of their fans’ debt.

I think it’s a huge problem that the youth of America have to bombard their favorite rapper or pop musician and ask them to pay back their student loans. They’re not even asking for selfies anymore,” Minhaj said. “That’s how desperate student borrowers are.”

AOC’s Debt

On average, the committee graduated college 33 years ago, but one representative in the room isn’t even that old yet.

During the hearing, Democrat Alexandria Ocasio-Cortez, 29, said she’s still paying off her college debt and made a display by reading her payment in front of the committee.

“I literally made a student loan payment while I was sitting here at this chair,” she said, “and I looked at my balance, and it was $20,237.16. I just made a payment that took me down to $19,000, so I feel really accomplished right now.”

According to Roll Call, her debt is actually less than the average student loan debt for a Congress member. Currently, 68 members of Congress have student loan debt either for themselves or a dependent, with the average debt being around $37,000. Eight members of Congress have more than $100,000 in debt.

See what others are saying: (NBC) (USA Today) (Vulture)

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Liz Cheney Ousted From GOP Leadership Role for Calling Out Trump’s Election Lies

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  • Rep. Liz Cheney (R-Wy.) was ousted from her leadership post by Republicans on Wednesday due to her repeated criticism of former President Trump and his continued efforts to spread false information about the 2020 election.
  • The congresswoman remained defiant in remarks Tuesday night, where she argued Trump was “a threat America has never seen before” who “risks inciting further violence.” 
  • While many Republicans cheered Cheney’s removal as a key step to unify the party, others condemned the decision and accused GOP leadership of “canceling” her for speaking the truth.
  • The move represents perhaps the strongest indication since the Jan. 6 insurrection that the Republican Party will continue to embrace Trump and punish dissenters.

House GOP Removes Cheney From Top Spot

The House GOP voted to remove Rep. Liz Cheney (R-Wy.), the number 3 Republican, from her leadership position Wednesday over her refusal to stay silent about former President Donald Trump’s false election claims.

The remarkable removal comes just four months after the former president incited an insurrection, causing major splits in the GOP.

The latest move is arguably the strongest signal that Republicans have decided their party line is unwavering loyalty to Trump, and that they believe his support is needed to win back the House in 2022.

This is not the first time that Republicans tried to oust Cheney from leadership. Earlier this year, Trump loyalists in the chamber held a vote to remove her after she voted to impeach the president for his role in the insurrection.

That attempt failed, largely because Cheney received backing from Republican leadership. This time, however, she did not have the support of Minority Leader Kevin McCarthy (R-Ca.), who began mobilizing to remove the congresswoman last week after she tweeted that the 2020 election “was not stolen.”

“Anyone who claims it was is spreading THE BIG LIE, turning their back on the rule of law, and poisoning our democratic system,” she added. 

While Cheney has reiterated this stance many times since January, her latest comment seemed to be the final straw, and on Monday, McCarthy officially announced he was holding a vote on her position in a letter to his conference.

In the letter, which was full of contradictions, McCarthy claimed that the GOP was a “big tent party” of “free thought and debate,” while simultaneously calling for the removal of a leader who broke with Trump, and painting the vote as a necessary step to unify the party.

A majority of the party backed that decision Wednesday morning when McCarthy held a voice vote, making it so that the public will never know exactly how many people voted to remove the congresswoman.

Cheney’s Speech

Cheney, for her part, held firm to her beliefs in a defiant speech Tuesday ahead of the anticipated vote, where she continued to condemn Trump’s lies and accused her fellow Republicans of being complicit in undermining Democracy.

“Today we face a threat America has never seen before. A former president, who provoked a violent attack on this capital in an effort to steal the election, has resumed his aggressive effort to convince Americans that the election was stolen from him,” she said. 

“He risks inciting further violence. Millions of Americans have been misled by the former president, they have heard only his words, but not the truth, as he continues to undermine our democratic process, sowing seeds of doubt about whether democracy really works at all.” 

“This is not about policy. This is not about partisanship. This is about our duty as Americans,” she continued later.  “Remaining silent and ignoring the lie emboldens the liar. I will not participate in that. I will not sit back and watch in silence, while others lead our party down a path that abandons the rule of law and joins the former president’s crusade to undermine our democracy.”

Response

Cheney’s parting speech drew boos from some of her colleagues, many of whom cheered her ouster Wednesday.

“Liz Cheney is the GOP of the past,” Rep. Lauren Boebert (R-Co.) tweeted. “We are not going back.”

Trump himself also issued a series of statements calling Cheney a “bitter, horrible human being,” and claiming that Republicans “have a great opportunity today to rid themselves of a poor leader, a major Democrat talking point, a warmonger, and a person with absolutely no personality or heart!”

However, many House Republicans condemned the move.

“i predict that the history books of the future will not celebrate,” Rep. Adam Kinzinger (R-Il.) wrote in a thread “They will say this was the low point of the Republican Party.” 

“Liz Cheney was canceled for speaking her mind,” Rep. Ken Buck (R-N.Y.) told reporters.

Next Steps

There has been a similarly mixed reception to Cheney’s anticipated replacement, Rep. Elise Stefanik (R-N.Y.), who McCarthy has tapped to fill the position.

Stefanik took office as a moderate cheered for openly defying and condemning Trump. Her role in Congress changed drastically in the fall of 2019, when she became one of the most vocal opponents of his first impeachment, prompting him to tweet, “A new Republican Star is born.” 

After that, she booked more TV appearances, campaign donations, and general fame. Her support for the former president grew and she doubled down, spreading his false election claims in 2020.

If she is elected to leadership, as is expected, the top three House Republican leadership positions will all be held by people who voted to not certify President Joe Biden’s win.

Cheney, for her part, has made it clear she does not intend to go anywhere. After Wednesday’s vote, the congresswoman told reporters that she will do “everything” she can “to ensure that the former president never again gets anywhere near the Oval Office.”

“The nation needs a party that is based upon fundamental principles of conservatism, and I am committed and dedicated to ensuring that that’s how this party goes forward, and I plan to lead the fight to do that,” she added.

According to The Washington Post, sources have said that Cheney already spent the last week planning for increased travel and media appearances to promote her case and rally other Republicans behind her.

She likely will not be alone in her endeavors: on Tuesday, The New York Times reported that more than 100 current and former anti-Trump Republicans are preparing to release a letter this week threatening to split from the GOP and create a third party if changes are not made.

See what others are saying: (The New York Times) (The Washington Post) (NPR)

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Biden Says Americans Will Lose Unemployment Benefits if They Turn Down “Suitable” Jobs

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  • President Biden said Monday that out-of-work Americans will lose their enhanced federal unemployment benefits if they turn down a “suitable” job offer.
  • The announcement follows a stark jobs report from the Labor Department, which found that just over 260,000 jobs were added in April when nearly 1 million had been projected.
  • Republican lawmakers blamed the additional $300 a week in joblessness benefits provided by the federal government, and several Republican-led states have opted out of the programs, arguing that doing so will encourage people to go back to work.
  • Biden rejected those arguments, noting that numerous studies disprove that claim. Instead, he said American corporations should do more to entice people to work, such as providing pay raises and COVID safety precautions.

Biden Addresses Benefits as Job Creation Falters

President Joe Biden on Monday ordered the Labor Department to ensure that Americans will lose their enhanced federal unemployment benefits if they do not accept a “suitable” job when offered.

In remarks at the White House, Biden also said he would direct the agency to work jointly with states to reimpose the requirement that people collecting joblessness benefits must show they are actively looking for work.

The comments come just days after the latest jobs report showed far fewer positions created than expected. The Labor Department reported that just 266,000 jobs were added last month, even though economists had predicted it would be about 1 million.

While broad swaths of the U.S. economy are opening up as more Americans get vaccinated, some employers have reported that they are having a hard time finding workers.

Republicans have largely argued that this is because of the additional $300 a week in unemployment benefits Americans are collecting from the last stimulus package.

The Unemployment Debate

In his address, however, Biden hit back on that claim. He said the White House does not “see much evidence” that benefits have deterred people from taking jobs — a fact that is supported by numerous studies on pandemic unemployment benefits. He also argued that corporate America has to do more to encourage people to come back to work.

The president placed responsibility on employers, especially those who have accepted federal relief, to raise their pay, protect their workers from the virus, and help them gain access to vaccinations so out-of-work Americans feel safe going back.

“My expectation is that as the economy comes back, these companies will provide fair wages and safe work environments, and if they do, they’ll find plenty of workers,” he said. “And we’re all going to come out of this together and better than before.”

Some companies have already started to take similar steps, like Chipotle, which announced Monday that it was raising its average wage to $15 an hour to address the labor shortage. However, many big companies will simply wait it out.

Those businesses may not have to wait long because a growing number of Republican-led states have been rejecting the increased federal unemployment money. On Monday, the governors of Alabama and Mississippi joined Montana, South Carolina, and Arkansas and announced their states would be leaving the programs by mid-June. More states are likely to do the same. 

See what others are saying: (NPR) (CBS News) (CNBC)

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Trump’s DOJ Allegedly Obtained Phone Records of WaPo Reporters Covering Russia Probe

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  • Former President Trump’s Justice Department secretly obtained phone records from Washington Post journalists covering Russia’s involvement in the 2016 election, the outlet reported Friday.
  • The DOJ seized records of the work, home, and cellphone numbers of three reporters from April 15 to July 31, 2017. Those records included who the calls were with and how long they were, but not what was said.
  • Many journalists and Free Speech activists condemned the action and called on the Biden administration to end the practice of record subpoenas, which are often used by the government to find clues about possible sources and can harm key newsgathering.
  • A DOJ spokesperson defended the previous administration’s actions, arguing that the news media are not the targets of such investigations but rather, “those with access to the national defense information who provided it to the media and thus failed to protect it as lawfully required.”

Washington Post Reporters Subpoenaed

The Washington Post reported Friday that the Justice Department under former President Donald Trump secretly obtained phone records from some of its journalists regarding reporting they did on Russia’s role in the 2016 election.

According to the outlet, the DOJ sent three separate letters dated May 3 and addressed to three former Post journalists to inform them they were “hereby notified that pursuant to legal process the United States Department of Justice received toll records associated with the following telephone numbers for the period from April 15, 2017 to July 31, 2017.” 

The letters, which listed work, home, or cellphone numbers, also stated that prosecutors had gotten a court order to obtain records for the reporters’ work email accounts, but that they did not ultimately not obtain those records.

The phone records, the outlet said, “included the numbers of all the calls made to and from the targeted phone over the specified time period, and how long each call lasted, but do not include what was said in those phone calls.”

“Investigators often hope such records will provide clues about possible sources the reporters were in contact with before a particular story published,” it added.

The Post reported that the letters do not say why the DOJ was seizing the phone records. However, it did note that toward the end of the time period outlined, the three reporters had written a story about classified U.S. intelligence intercepts that indicated then-Attorney General Jeff Sessions had discussed the Trump campaign with Russia’s ambassador to the U.S. when he was a sitting senator in 2016.

The alleged move is significant because it is rare for the DOJ to use subpoenas in order to obtain records of reporters in leak investigations. In fact, the last high-profile seizure of communication records was part of an investigation into a source cited in 2017 reporting that was also about the investigation into Russian election interference.

Also very notably, these subpoenas need to be approved directly by the attorney general. A spokesperson for the DOJ told The Post that the records had been requested in 2020, meaning it would have likely taken place under Attorney General William Barr, who stepped down on Dec. 23.

Response

The allegations immediately drew criticism from First Amendment advocates and journalists, who have long opposed the practice of obtaining these kinds of records, and argued that attempts to identify sources of leaks hurt critical news gathering and reporting.

“We are deeply troubled by this use of government power to seek access to the communications of journalists,” said Cameron Barr, the current acting executive editor of The Post. “The Department of Justice should immediately make clear its reasons for this intrusion into the activities of reporters doing their jobs, an activity protected under the First Amendment.”

Many other journalists also demanded that the Biden administration ensure such practices are not replicated, noting the escalated efforts to subpoena reporters records under both the Trump and Obama administrations.

However, a DOJ spokesperson defended the previous administration’s decision to subpoena The Post reporters in a statement to the outlet.

“While rare, the Department follows the established procedures within its media guidelines policy when seeking legal process to obtain telephone toll records and non-content email records from media members as part of a criminal investigation into unauthorized disclosure of classified information,” the spokesperson said. 

“The targets of these investigations are not the news media recipients but rather those with access to the national defense information who provided it to the media and thus failed to protect it as lawfully required.”

See what others are saying: (The Washington Post) (Variety) (CNN)

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