The Ministry of Education (ED) announced Monday that it will begin an unwilling student loan collection effort after a five-year suspension.
Senior department officials told the Daily Carener News Foundation that the aim is to remove burdens from taxpayers as unwilling collections were suspended during the March 2020 pandemic and not reopened under the Biden administration. ED will begin referring default student loans to collections from the Treasury Offset Program starting May 5th.
“The federal student loan portfolio continues to grow and has a record amount of borrowers at or at risk of delinquency and default,” an ED official told DCNF. “The federal student loan portfolio is heading towards the fiscal cliff unless you start paying off or collecting.” (Related: Student Loan Borrower Breaking Safe by Biden has accumulated other debt mounds)
Student loans have the latest four borrowers, with as many as 4,000,000 borrowers in late delinquency for 91 to 180 days, department officials notified the DCNF. Approximately 35% of the federal student loan portfolio are 60 days of late, with 5.3% defaulting for over seven years.
President Donald Trump will speak with Entertainer Kid Rock before signing the executive order at the White House’s oval office on March 31, 2025 in Washington, DC. (Photo: Andrew Harnik/Getty Images)
“The current administration believes that American taxpayers can no longer function as collateral for student loans. Student loan obligations must be paid back,” the official said.
After 30 days of notice, the department will begin managing wage decorations for unpaid loans beginning in the summer.
The department plans to launch “significant outreach efforts to make borrowers aware of their obligations” and notify them of programs that can be used to repay, such as income-driven repayments.
“We believe Congress plays a role in revising the higher education system, which puts students in a position to pay the loan payments,” department officials told DCNF. “So I look forward to working with Congress on efforts to streamline loan repayments and reducing university costs.”
That’s how the student loan repayment was It was temporarily suspended During the Covid-19 pandemic during the first Trump administration, but since then the suspension has been continuously extended. Former President Joe Biden has made several attempts to allow student loan debt, although many efforts were determined to be unconstitutional.
All content created by the Daily Caller News Foundation is an independent, nonpartisan newswire service that is free to use for legitimate news publishers that can provide large audiences. All republished articles must include logos, reporter signatures and DCNF affiliation. For questions regarding our guidelines or partnerships with us, please contact licensing@dailycallernewsfoundation.org.
