The U.S. Department of Education announced it will begin sending defaulted student loans to debt collectors starting May 5, 2023. This comes after a prolonged pause on student loan collections during the COVID-19 pandemic. All borrowers in default will be notified via email and are encouraged to reach out to resolve their loans. Secretary of Education Linda McMahon criticized previous administration policies, emphasizing the need for borrowers to return to repayment to ensure both individual financial health and the broader economy's stability.
The Biden Administration misled borrowers: the executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear.
Hundreds of billions have already been transferred to taxpayers. Going forward, the Department of Education... will shepherd the student loan program responsibly and according to the law.
Collection
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