White House Press Secretary Karoline Leavitt announced Tuesday that, starting on May 5, the Department of Education will resume involuntary collections of debt from student loan borrowers who have defaulted on their payments.
Leavitt explained that the Trump administration “is officially putting an end to Joe Biden’s illegal student loan bailout attempts.” The federal government has not referred any student loans to collections since March 2020. Leavitt said that the United States currently has about $1.6 trillion in student loan debt, but fewer than 40 percent of borrowers are currently in repayment. Debt can be involuntarily collected through borrowers’ tax refunds, federal pensions, and wages.
“This is unsustainable, unfair, and a huge liability for American taxpayers,” Leavitt said Tuesday in a press briefing. “Debt cannot be wiped away. It just ends up getting transferred to others. So why should Americans who didn’t go to college or went to college and responsibly paid back their loans pay for the student loans of other Americans?”
The Department of Education (DOE) explained in a statement that the “initiative will be paired with a comprehensive communications and outreach campaign to ensure borrowers understand how to return to repayment or get out of default.”
The DOE stated that Congress mandated borrowers begin repaying student loans in October 2023, but the Biden administration did not lift the pause. The previous administration also “failed to process applications for borrowers who applied for income-driven repayment” and instead pushed for full forgiveness of federal student loans – something the Supreme Court ruled unconstitutional.
In a fiery op-ed for The Wall Street Journal, Secretary of Education Linda McMahon argued that Biden “never had the authority to forgive student loans across the board… But for political gain, he dangled the carrot of loan forgiveness in front of young voters.”
“Borrowing money and failing to pay it back isn’t a victimless offense,” McMahon continued. “Debt doesn’t go away; it gets transferred to others. If borrowers don’t pay their debts to the government, taxpayers do.”
“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” McMahon later told reporters. “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. Hundreds of billions have already been transferred to taxpayers.”
The DOE explained that more than five million borrowers have not made monthly payments in over one year and have defaulted on their loans. At the current rate, there will be almost 10 million defaulted borrowers in a few months.
Defaulted borrowers will receive emails over the next two weeks encouraging them to “make a monthly payment, enroll in an income-driven repayment plan, or sign up for loan rehabilitation.” The Office of Federal Student Aid (FSA) will send notices during the summer alerting borrowers of “administrative wage garnishment.”
The FSA will also be launching an “enhanced Income-Driven Repayment (IDR) process” to simplify how borrowers enroll in an IDR plan and eliminate the need to recertify their income each year. The purpose of an IDR plan is to adjust monthly payments for borrowers depending on their income and family size.
Alan Jamison is the pen name of a political writer with extensive experience writing for several notable politicians and news outlets.
Biden did things he was not allowed to do and the Media says nothing. Trump does what he IS allowed to and the Media won’t stop complaining. Are any of our Tax dollars somehow going to the Media? This needs to be looked into as it would be hard to believe the Democrat Party couldn’t find a way to give them some kind of kickback. Especially as so many of them are acting lately like the Media owes them for something!
I’m a registered Independent and have never been a fan of student loan forgiveness. Pay what you owe. That said, this same principle goes for the $600 billion (Treasury estimate) in taxes owed, but not paid, by high-income individuals.
The same government that de-banked their political enemies used covid pause in payments to keep people not paying. Some are so far past due. What a mess. This government must get out of student loan business.
The executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear. Hundreds of billions have already been transferred to taxpayers.”
Well…we want that money back, as well!!!
Thanks for Jackass Joe Biden’s “rein of terror” our economy will continue to struggle and here in Southern California under Governor Gruesome Newsom it will struggle to recover even longer! My mother gave me some advice when I first moved out at 21 years old. Never pay more than 10 cents a lb. for bananas or watermelon. Well guess what: bananas cost 79 cents lb. and watermelon 89 cents lb. If my mother were alive today she would probably not trust or vote Democrat ever again. She told me that she was a Democrat because they represented the Middle Class but today she would change her alligence too!!!
Oh the horror. to think that these sorry little entitled whiners are going to have to ACTUALLY WORK, like tens of millions have had to do for a dozen of decades, TO PAY THEIR OWN WAY.
YEP, IT’S TIME FOR THESE ‘CHILDREN’ TO GROW UP AND SHOW SOME REAL, PERSONAL RESPONSIBILITY. It won’t be easy, but anything worthwhile, isn’t.
The people who took out these loans signed contracts in which they agreed to pay them back. It is long past time for them to make good on their obligations and pay these loans back.
Democrats are going to have a cow! The only signed as legally responsible for the loan, you got the education sometimes that’s the questionable, and now you have to pay the bill. Welcome to life. Reality sucks doesn’t it
What? Pay back a loan? Amazing idea!
Another Joebama tactic aimed at getting the votes of DEI-indoctrinated brats who felt they were entitled to free stuff. Anyone care to bet which federal “judge” will block this common-sense agenda, even though SCOTUS already ruled against Biden’s student loan forgiveness plan?
AMEN! Thank you President Trump!!
First, many of these “borrowers” had NO reason to go to these expensive ELITE [??] schools with bloated prices. Then they get worthless degrees in woke majors which don’t lead to real jobs! The majority of taxpayers could never afford these high-priced, low-value colleges yet Joey expected all of us to pay for the freeloaders!
There likely aren’t any illegal aliens in this group of people. I wonder if the aclu is going to sue to stop the Administration from trying to collect the debt owed to the taxpayers.
It’s good to see Joe Biden’s stupid ploys to get reelected ended.
When I attended school I had to pay off my Education Loans or whatever bills that were my responsiblity. I believe this is one’s personal duty, not the Taxpayer. Too, this should follow that individual wherever they go and a portion of their employment be Garnished for repayment of Academic Debt.
This. Is. Awesome. Biden was warped in so many ways and this is one of them. Mr. T trying to reestablish reason, and common sense to human affairs in the United States.
This plan was another way to bankrupt America. Biden ignored the Supreme Court ruling and made millions of American students indebted to the govt. Did they really think the govt was going to pay for their education while they demonstrated against America and pro Hamas. After 4 years they don’t know any more than when they started at these universities. Trump is correct. Those students that paid their tuition loans and working taxpayers should not have to pay their loans today. Like we shouldn’t have to pay for illegal aliens in this country. Our FEMA. and Soc Sec money goes to these people and now they are opening up Medicaid to them. We citizens are paying for trans surgeries, abortions but those who want to keep their children safe from this mutilating surgery or want to keep their babies are persecuted and better pay their taxes to these programs they oppose. One trans has been given the power to order the majority to obey. All this is, was a way to destroy America and the Supreme Court and the Country. See another lawsuit coming. Which liberal judge will get this case.
Alot of Phycology majors who are now baristas are in a panic. The free ride is over. The gray train stops here.
Apparently, Republicans don’t feel the need to buy massive numbers of votes like the Democrats tried to do. Perhaps also there weren’t enough citizens whose votes were for sale.
Now comes the wails and moans from irresponsible students, LEFT, Dems, media, etc. Follow that with lawsuits because everything Trump must be taken to the defective district court mess.
Maybe we need a taxpayer revolt to drown out the noise!
About time!!! I went to college to become a registered nurse. I had 3 kids at home to support during that time. I paid for my classes by baling hay and working part time. I got no student loans. I’ll be damn if I will pay for some kid who goes to these elite schools to get multiple college degrees! They can work and pay as they go, just like I and many others , have done. Thank you President Trump for ending the illegal practice instituted by Biden.
President Trump is doing a great job for America and the American people!! Biden and his Democratic Party are enemies of America and the American people, trying to destroy our country anyway they can even to bankrupt it!
Force colleges to pay since much money from donors & endowments for the students
Help the students OK
Nationwide
thank goodness for President Trump! it was ridiculous to have to pay for someone’s loan, when many didn’t go to college and had no loan and others paid them off by working for long time. this is what the left does – they buy votes and they spend spend spend our hard earn money. if you vote for them you are not American
The GOP should make sure the students understand that Biden ILLEGALLY got their hopes up!!
Students who owes money Federal Government for Education who who working and or serving as in Congress should pay back!
About time. I got my money for school by being a veteran and paid my own way.
Why should I repay loans for someone who took out loans they can not repay? I have 2 college degrees and no debt. Did not go to a college that I could not afford and get a degree that was useless.
It has been 100-days now, so I hope that Trump & Karoline keep bringing up that all problems exist because of the prior administration poor performance. It is time to admit when you are right and wrong & start with uniting Americans again. Pay some attention to Ronald Reagan actions as POTUS.
The universities with all the big endowment funds should be paying these student loans. They lured people in to pay big tuitions and then did not educate them. It is their fault they can’t get jobs to earn enough to pay those loans.
You borrow money, you pay it back. Those are the rules. No senile old President trying to buy votes can change them either. Colleges and universities reaped the “student loan” harvest offering useless non-STEM “degrees” to anyone who wanted them regardless of ability to pass entrance requirements.
The college the person went to should have to pay off the student loan, if the student did not pay. Never should a taxpayer pay for their loan. Never!
De-Federalize student loans. I don’t want my tax dollars anywhere near higher education!
Be more careful how you write things. This quote is misleading. “but fewer than 40 percent of borrowers are currently in repayment.” This is because Biden put them all in deferment and this has not been undone. They are not in default. The borrowers are just as confused as the program is chaotic.
Young college students don’t understand financial responsibility, they think everything should be given to them!
All students should have to get a small job, get a pay check with government deductions, put 10% in a bank account for retirement/or emergencies then use the rest to live on. This is how about 80% of the population live.
A good lesson on responsibility always make better citizens. Our schools have failed them!
AMEN, brah! The wife and I paid off our loans (we also studied college courses that led to actual degrees. NOT ‘women’s studies’, not ‘middle east strife’, not coloring and LEGO building in “Safe Rooms”). GET IT DONE, DJT!
welfare goons suffer more losses. Continue winning Trump. I’m not tired of winning yet.
ONe method of ensuring repaymen of loans is the garnishment of assets. Garnish the ENDOWMENTS of the complicit colleges.
Government(taxpayers) should never have backed these loans.If some private lender wants to take a chance on making these loans,I have no problem.Like Reagan said,”Government is the problem,not the solution”.Got money?Got gold?
Economic literacy in this country does not exist in any way, shape, or form. Parents don’t teach their kids about how borrowing money works. Schools are not teaching it because they don’t have space in their curriculums because of all the socialist classes required. These are not excusable reasons for the economic illiteracy, these are criminal acts deliberately being practiced by our irresponsible society and we’re all to blame for allowing it to occur. We need to change NOW !
A Jeopardy champion was asked what he would do with his winnings. He said he COULD pay his student loans but instead he and his wife would take a trip.
Tell them to pay up. if they don’t they won’t get a diploma. Then tell them they can always go back to college for another 8 years. Costing them more money. Also a letter should hang under their diploma saying in arrears. Or they can only charge Americans half of what they normally charged. Better yet have 3 colored diplomas white paid in full. Pink still paying it off. Red the tax payers paid for his
Sanity is coming back!
I graduated college the middle of last century. My debt in today’s money was sizeable. We paid it off in monthly payments over ten years. Colleges today are charging students huge money to earn degrees which colleges know are not going to pay off the debt. This is legal fraud. Students should get a break for college debt, BUT NOT FROM TAXPAYERS. The colleges which overcharged them should be responsible for the debt.
I wonder if the students have learned anything. Such as, agreeing to pay a loan and then expecting it to be written off. I guess it’s all about integrity.
I agree with having the borrowers pay back their loans and not the taxpayers. However, I was told by a college graduate that the interest rate on student loans is extremely high. I do not agree with that.
What Biden did was a disaster,but was it worse than Trump’s tariffs?This country is going down,until voters get brains.