Education Dept to Begin Collecting on Student Loan Debt for First Time Since 2020
“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies”
It’s about time. When do people with auto loans get a five year hiatus on their payments?
The Associated Press reports:
Student loans in default to be referred to debt collection, Education Department says
The Education Department will begin collection next month on student loans that are in default, including the garnishing of wages for potentially millions of borrowers, officials said Monday.
Currently, roughly 5.3 million borrowers are in default on their federal student loans.
The Trump administration ’s announcement marks an end to a period of leniency that began during the COVID-19 pandemic. No federal student loans have been referred for collection since March 2020, including those in default. Under President Joe Biden, the Education Department tried multiple times to give broad forgiveness of student loans, only to be stopped by courts.
“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” Education Secretary Linda McMahon said.
Beginning May 5, the department will begin involuntary collection through the Treasury Department’s offset program, which withholds government payments — including tax refunds, federal salaries and other benefits — from people with past-due debts to the government. After a 30-day notice, the department also will begin garnishing wages for borrowers in default.
The decision to send debt to collections drew criticism from advocates, who said borrowers had experienced whiplash and confusion with the changing student loan policies between the Biden and Trump administrations.
“This is cruel, unnecessary and will further fan the flames of economic chaos for working families across this country,” said Mike Pierce, executive director of the Student Borrower Protection Center.
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Hey Mike Pierce. How much money do you own on your student loans you deadbeat. Pay up.
Oh by the way if you’ve defaulted on your student loan you shouldn’t be employed in government. Never mind garnishing the wages. Kick them out.
Can someone please explain how this is cruel and unnecessary? Borrowers (students) have known since they incurred the student loan debt that they were required to repay it. This is like saying it’s cruel and unnecessary to require people to repay their auto loans and mortgages.
The Leftists/Socialists (BIRM) led them down the primrose path by telling them that Good Ole Uncle Joe would make all that debt go away like a bad dream, only to be stopped by the courts. Blame Biden, Warren, Bernie, and other purveyors of disinformation for any economic chaos resulting from them misleading the gullible freeloaders and getting their hopes up.
1. Get the government out of the student loan business.
2. Allow students to declare bankruptcy on their student loans.
This would encourage lending institutions to employ discretion when lending money to students.
No bankruptcy. Just the fact the government is out of the business would cause lenders to employ discretion. Of course I can already hear the screams of racism when urban blacks can’t get loans because they are a shitty risk.
“The decision to send debt to collections drew criticism from advocates, who said borrowers had experienced whiplash and confusion with the changing student loan policies between the Biden and Trump administrations.”
Look on the bright side — you didn’t have to walk 2,700 miles before finding out Joe Biden fed you a big, stinking lie.