Starting next month, the Education Department will resume collections on roughly 5.3 million borrowers in default on their federal student loans, ending a pause initiated during the pandemic. This includes wage garnishment and withholding of federal payments. Education Secretary Linda McMahon emphasized that taxpayers should not bear the burden of ineffective student loan policies. Critics argue that the abrupt policy changes between the Trump and Biden administrations create chaos for borrowers, with concerns voiced about the economic impact on working families.
"American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies," Education Secretary Linda McMahon said.
"This is cruel, unnecessary and will further fan the flames of economic chaos for working families across this country," said Mike Pierce, executive director of the Student Borrower Protection Center.
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