Office of Federal Student Aid- Pay Up
Department of Education
The previous administration sought to purchase votes with tax dollars by forgiving unpaid Federal student loan debt to college borrowers. This was patently unfair, not to mention unconstitutional, and was eventually found so by SCOTUS. Yet the ~5,000,000 defaulted loans went uncollected until now.
Department of Education to Restart Involuntary Student Debt Collection After Pandemic Pause
Katherine Hamilton
The Department of Education (DoEd) is gearing up to restart involuntary debt collection for its defaulted federal student loan portfolio after pausing collection during the COVID-19 pandemic, the department announced Monday.
The Office of Federal Student Aid (FSA) will officially resume collections of its defaulted federal student loan portfolio on May 5 — until then, borrowers in default will receive emails from FSA making them aware of the change and offering information and assistance. By summer, FSA will send notices before beginning administrative wage garnishment, according to DoE.
DoEd noted that it has not collected on defaulted loans since March of 2020, and while Congress mandated borrower repayment in Oct. 2023, the agency said the Biden-Harris administration “refused to lift the collections pause and kept borrowers in a confusing limbo.” DoEd also accused the Biden-Harris administration of failing 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.”
“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” U.S. Secretary of Education Linda McMahon said in a statement.
TANSTAAFL is alive and well, even for liberal arts grads with useless degrees.
Category: "Your Tax Dollars At Work"
