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"
GI Bill, baby!
Yep! They “loaned” me the money to go to college and I paid it back it back with interest. What a novel idea.
Private colleges are getting bad feels all around. Between the loan debacle, cutting off federal DEI funding, stopping funding to bigoted colleges, immigration laws working again it is just bad news all around. They had to wait decades for the other shoe to drop but it is dropping like a ton of bricks.
And the irony is that internal faculty usually have no loyalty.
Once the gravy train stops, rules followed and accountability enforced, many will jump ship.
Jump to where? (that would be fun to watch. “would you like to supersize your order?”)
Good question.
Probably polishing up those CV’s our signing on to the class actions….
Hack Stone somehow managed to make it into his 60’s before incurring any debt, thanks to Joe Biden. No joke. End quote. Repeat the line.
Same with me. No debt other than a mortgage.
I guess thats because we do wild stuff like living within our means and paying our bills on time
If we the taxpayers had to foot the bill for these utes to pursue higher education, how come we had no say in what degrees they pursued? I can understand helping academically qualified individuals getting a loan to pursue a degree that would contribute to improving our country, such as in medicine, engineering and other critical skills, but what return on investment does the taxpayer get in providing some kid who hates the white patriarchy getting a $100,000 loan for gender studies?
You have a good point Hack’, but I feel that it was more likely the degree studies that turned them against the “White patriarchy”, and that they were simply guided to this by a sympathetic counselor or professor.
I know some people on boards that grant scholarships and they like to explain to some prospective students that their choice of degree and school should be reconsidered as they don’t match a good financial outcome. If the student is unwilling to change, they simply tell them they did not get the scholarship or grant. I think that student loans should be directly linked to needed professions and financial viability!
I am thankful that my parents were solvent enough to provide me with a personal loan and reasonable rates of interest for my bachelors degree. They made more money than a bank would have given them, and I was able to negotiate a reasonable time period to repay the loan, even when I changed my degree field. They even did not pressure me to join the military to have an assured way to repay the loan after I switched to the Liberal Arts Department (for some reason Economics was not in the Business Department).
With the rise in FISLs came a rise in the number and costs of college administrators.
#1 Son had his MA and was one of the best English professors ever, adjunct, full, or tenured. Vets said that his class on The Iliad captured the reality of battle and war – he got his best student engagement from them.
YET: his paycheck was about what you’d get as an E2-E3 with no healthcare for his family. But you can bet your bottom dollar that the admin pukes were well funded. The tenured faculty still had lousy pay, but better healthcare benefits.
Funded by FISLs, where if the student did not get a marketable education (or just an education) there was no penalty on the university.
When there are no consequences for poor performance but plenty of incentives to admit students who have no hope of finishing – whose SATs and ACTs were abysmal and needed to learn how to read and write just to continue – you can bet they didn’t give a tinker’s dam about the kids but admitted them so they could go into debt and the university could get the money.
IMHO – if a student defaults because he could not get a degree there, the school should bear all or part of the cost of repaying the money.
Wah wah wah (cue up George Harrison) If your worthless degree gets you a job that you can’t afford to REPAY YOUR LOAN on, I understand that The Good Intentions Paving Company is always hiring. Again…REPAY.YOUR.LOAN!
But if they close Education like they say, who would collect
Big Louie and da’boys. Put them out for collection.
My understanding is the Small Business Administration will assume that task. That might’ve changed though.
Who used to administer the student loan program before DC decided they could manage the program better?
I’m from the govt and I’m here to help.
What’s the most outrageous is that they delayed approval for programs specifically set up for people with too much student debt. ICR and IBR scale payments to income, with an escape hatch after 30 years of recurring payments. It’s similar to payment plans that some credit card companies offer.
Biden & co encouraged people to use his stupid plan, and even forced people who used an already existing program for loan forgiveness on to his plan.
Damn!
Looks like I’ll have to change my name and move again…
Pay up bitches
To my way of understanding, this is what I learned about all loans. There should be no difference between a student loan and any other type of loan.
I paid my student loan back. My wife’s student loan got paid back. We paid our loans back as #1 priority. It’s pretty simple, once a month pay student loan, pay extra when you can. Before moving on with buying a home, purchasing new cars, etc. or saving money!