Student loans in default to be referred to debt collection, Education Department says

[Nevilledog]

https://apnews.com/article/student-loan-debt-default-collection-fa6498bf519e0d50f2cd80166faef32a

WASHINGTON (AP) — 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.

“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 payments from the government — including tax refunds, federal salaries and other benefits — from people with past-due debts to the government. After a 30-day notice, the department will also begin garnishing wages for borrowers in default.

*snip*

[hlthe2b]

1. I wonder how many of these poor borrowers have parents who voted for Trump

I'd hope most of the students, themselves did not do so, but...

[Squaredeal]

3. More to the point, how many campaigned for Harris?

They had a lot riding on this past election. They knew what was in store for them ifTrump got in.

[W_HAMILTON]

5. Anyone with student loans is old enough to vote.

I have no doubt that many of the ones that will be most affected by this are those on the left that complained Biden's student loan debt cancellation program """wasn't good enough""" and either sat out the election or voted third party.

Oh well, just Example #26,630,638 on why both parties are NOT the same. Hopefully they'll learn for next time -- if there is a next time...

[FirstLight]

2. Fuck them and the horse they rode in on

I'll keep deferring mine until the day I die I never got my degree I've tried three different times to go back to school and it never fucking stuck. So I'll pay them back when I actually get my degree

[Volaris]

4. So, theyre gonna sell this debt for 10 cents on the dollar,

In hope that somebody else can collect 25, when they could offer to take 30-50 from the original borrower, and increase their political capital for their effort.

The MAGA idiot at work needs to remind me again what a business genius Trump is, because everything he does proves otherwise.

[Igel]

6. The federal government is the last backer for federally subsidized student loans.

Does the government sell its debt to private debt collectors?

I mean, I know state governments use traffic ticket collection contractors, but the notices I've gotten for my ex all say that they're contractors for.