In the infinite and unrelenting attempts to bankrupt America, the U.S. Department of Education plans to resume student loan collections as early as May 5.
Yep, you read that correctly. With unemployment on the rise, 401(k)s in the trash, and tariffs ruining everything,, the Trump administration thought now was a good time to unpause the five-year hiatus on student loan borrowers under the threat of garnishing wages of those who can’t pay.
From NPR:
Of the more than 42.7 million student loan borrowers in the U.S., who owe a collective $1.6 trillion, the department says that more than 5 million have not made a payment in the past year. That number is expected to grow as an additional 4 million borrowers are approaching default status.
“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.
The department said it will begin notifying borrowers who are in default via email over the next two weeks, urging them to make a payment or to enroll in a repayment plan, and referring them to a government website providing information on how to do so.
Then, on May 5, the department will begin referring borrowers who remain in default to a collections program run by the Treasury Department.
“This could not have come at a worse time for millions of Americans,” Aissa Canchola Bañez, Policy Director for the Student Borrower Protection Center, told NPR. “Those borrowers are already finding themselves having to navigate such incredible economic uncertainty over the last few months.”
The Trump administration doesn’t have trouble reading the room, they just don’t care. If the plan is to bankrupt America, then they are well on the way. What’s even more sadistic is that older borrowers are probably the most vulnerable, as they have the most trouble paying back student loans. Some 40 percent of federal borrowers over the age of 65 are in default, according to a 2017 report from the Consumer Financial Protection Bureau.
“These are older folks who are on fixed incomes,” Bañez told NPR.
She added that once borrowers fall behind, their credit scores drop, making it almost impossible to get credit cards or loans for basic housing needs.
And because the government really doesn’t care about any Americans, it plans to send out a notice letting default borrowers know that they have 30 days to become current or their wages will be garnished.
It’s important to understand that no student loan borrowers have been sent to collections since the coronavirus pandemic hit. Only about 4 out of 10 borrowers are current on their student loan payments.
“Thirty-five percent of borrowers are 60 days delinquent and about 4 million borrowers are 91 to 180 days delinquent,” Politico reports.
SEE ALSO:
Minnesota Department Of Education Says No To Trump Administration’s Anti-DEI Mandate
Department Of Education Is Being Dismantled By Trump Executive Order
Education Department To Garnish Wages On Student Loan Debt
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