• Latest
  • Trending
  • All
  • News
  • Business
  • Lifestyle
Student Loan Borrowers Face Debt Collectors After Defaulting

Student Loan Borrowers Face Debt Collectors After Defaulting

May 5, 2025
Nicolle Wallace Gushes That Protest Signs For Illegal Immigrants Made Her ‘Democracy-Worried Heart Sing’

Nicolle Wallace Gushes That Protest Signs For Illegal Immigrants Made Her ‘Democracy-Worried Heart Sing’

June 2, 2025
EXCLUSIVE: House GOP Whip Says Colorado Terror Attack ‘Direct Result’ Of Democrats’ Open-Borders Agenda

EXCLUSIVE: House GOP Whip Says Colorado Terror Attack ‘Direct Result’ Of Democrats’ Open-Borders Agenda

June 2, 2025
EXCLUSIVE: Harvard Commencement Speaker Worked For Org Tied To China’s Military

EXCLUSIVE: Harvard Commencement Speaker Worked For Org Tied To China’s Military

June 2, 2025
US Will Reportedly Let Iran Enrich Uranium In Major Nuclear Deal Concession

US Will Reportedly Let Iran Enrich Uranium In Major Nuclear Deal Concession

June 2, 2025
Supreme Court Will Not Hear 2nd Amendment Challenges 

Supreme Court Will Not Hear 2nd Amendment Challenges 

June 2, 2025
‘It’s A Good Start’: Trump’s NIH Takes Step To Hold Risky Research Labs Accountable

‘It’s A Good Start’: Trump’s NIH Takes Step To Hold Risky Research Labs Accountable

June 2, 2025
Andrew Cuomo’s Campaign Attorney Targets Union That Made A List Of ‘Top Ten Reasons’ Not To Vote For Him

Andrew Cuomo’s Campaign Attorney Targets Union That Made A List Of ‘Top Ten Reasons’ Not To Vote For Him

June 2, 2025
‘Habitual Lawbreakers’: ICE Rolls Up Hundreds Of Illegal Migrant Criminals In Sprawling Blue State Operation

‘Habitual Lawbreakers’: ICE Rolls Up Hundreds Of Illegal Migrant Criminals In Sprawling Blue State Operation

June 2, 2025
NEWT GINGRICH: Do We Really Want Waste And Fraud In Medicaid?

NEWT GINGRICH: Do We Really Want Waste And Fraud In Medicaid?

June 2, 2025
Egg Prices Have Dropped 61% Since Trump Took Office

Egg Prices Have Dropped 61% Since Trump Took Office

June 2, 2025
‘Reckless’: Mike Huckabee Slams Media For Pushing Hamas ‘Propaganda’ Hours Before Colorado Terror Attack

‘Reckless’: Mike Huckabee Slams Media For Pushing Hamas ‘Propaganda’ Hours Before Colorado Terror Attack

June 2, 2025
Fed Offers Up Prediction That Spells Good News For Trump’s Economy

Fed Offers Up Prediction That Spells Good News For Trump’s Economy

June 2, 2025
  • Donald Trump
  • State of the Union
  • Elon Musk
  • Tariffs
  • Congress
  • Faith
  • Immigration
Monday, June 2, 2025
  • Login
IJR
  • Politics
  • US News
  • Commentary
  • World News
  • Faith
  • Latest Polls
No Result
View All Result
IJR
No Result
View All Result
Home News

Student Loan Borrowers Face Debt Collectors After Defaulting

by Andrew Powell
May 5, 2025 at 1:53 pm
in News
250 2
0
Student Loan Borrowers Face Debt Collectors After Defaulting

WASHINGTON, DC - APRIL 30: Education Secretary Linda McMahon speaks during a Cabinet meeting at the White House on April 30, 2025 in Washington, DC. Trump convened the meeting as reports released today say the U.S. economy contracted 0.3% in the first quarter of 2025, the first negative reading in three years, fueled by a massive surge in imports ahead of the administration's expected tariffs. (Photo by Andrew Harnik/Getty Images)

491
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

As of Monday, millions of student loan borrowers could be facing debt collectors after going into default on their loans during the Biden administration.

According to Fox Business, notices have been sent to borrowers after the Department of Education (DOE) said they will once again begin collecting loans to protect U.S. taxpayers “from shouldering the cost of federal student loans that borrowers willingly undertook to finance their postsecondary education.”

Secretary of Education Linda McMahon said in a statement that former President Joe Biden and his administration “misled” students.

“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” McMahon said. “The Biden Administration misled borrowers: the executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear.”

Loan payments were paused in March 2020 due to the COVID-19 pandemic; however, the DOE said its Office of Federal Student Aid (FSA) resume collections on May 5th.

“Today, 42.7 million borrowers owe more than $1.6 trillion in student debt,” the department said. “More than 5 million borrowers have not made a monthly payment in over 360 days and sit in default — many for more than 7 years — and 4 million borrowers are in late-stage delinquency (91-180 days). As a result, there could be almost 10 million borrowers in default in a few months.”

“All borrowers in default will receive email communications from FSA … urging them to contact the Default Resolution Group to make a monthly payment, enroll in an income-driven repayment plan, or sign up for loan rehabilitation,” the department added. “Later this summer, FSA will send required notices beginning administrative wage garnishment.”

While the pause ended in 2023, the Biden administration extended it through to the end of 2024 as part of Biden’s promise to implement loan forgiveness programs. Potential penalties for going into default could include administrative wage garnishment, according to The Wall Street Journal.

“While Congress mandated that student and parent borrowers begin to repay their student loans in October 2023, the Biden-Harris Administration refused to lift the collections pause and kept borrowers in a confusing limbo. The previous Administration failed to process applications for borrowers who applied for income-driven repayment and continued to push misguided ‘on-ramps’ and illegal loan forgiveness schemes to win points with borrowers and mask rising delinquency and default rates,” the Department of Education said, per Fox News.

Tags: Biden administrationDefaultDepartment of EducationDonald TrumpLinda McMahonpoliticsStudent loansTrump administrationU.S. News
Share196Tweet123
Andrew Powell

Andrew Powell

IJR, Contributor Writer

Advertisements

Top Stories June 10th
Top Stories June 7th
Top Stories June 6th
Top Stories June 3rd
Top Stories May 30th
Top Stories May 29th
Top Stories May 24th
Top Stories May 23rd
Top Stories May 21st
Top Stories May 17th

Join Over 6M Subscribers

We’re organizing an online community to elevate trusted voices on all sides so that you can be fully informed.





IJR

    Copyright © 2024 IJR

Trusted Voices On All Sides

  • About Us
  • GDPR Privacy Policy
  • Terms of Service
  • Editorial Standards & Corrections Policy
  • Subscribe to IJR

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Politics
  • US News
  • Commentary
  • World News
  • Faith
  • Latest Polls

    Copyright © 2024 IJR

Top Stories June 10th Top Stories June 7th Top Stories June 6th Top Stories June 3rd Top Stories May 30th Top Stories May 29th Top Stories May 24th Top Stories May 23rd Top Stories May 21st Top Stories May 17th