MSNBC panelists worried on Friday that the Trump administration’s decision to begin abolishing the Department of Education (ED) would make it impossible to allow student loans.
President Donald Trump signed executives order She announced to Education Secretary Linda McMahon that she began closing her agency on Thursday, fulfilling her campaign promises, and on Friday student loans will be processed by the Small Business Administration (SBA). MSNBC analyst Susan Del Percio told MSNBC host Alex Witt that Trump is trying to “privatize” student loans. (Related: Tim Waltz claims without evidence that quarantine will return if education sector is closed)
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“What scares me the most is that the government is no longer collecting debts because those student loans are probably already privatized,” Del Percio argued. “If you privatize it, that doesn’t mean forgiveness of debt. There’s a lot to come with that. So I think it’s probably the biggest red flag that will hit people right away.”
Despite the Supreme Court ruling that took away efforts to forgive student loans in a June 2023 ruling of 6-3, President Joe Biden repeatedly tried to continue to forgive loans. In August 2024, the Supreme Court refused to lift the Court of Appeal order blocking the Biden administration’s efforts to allow student loan debt.
Biden announced in August 2022 that $10,000 in student loan debt would be allowed for anyone making less than $125,000, while PelGrant recipients received $10,000 debt relief. The Congressional Budget Office estimated on September 26, 2022 that relief tax would cost taxpayers $430 billion. letter to Sen. Richard Burr of North Carolina and Republican Rep. Virginia Fox of North Carolina.
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