Student loans in default will be referred to debt collection next month, Trump's DOE says

The Department of Education confirmed that it will restart collections on federal student loans beginning May 5, affecting approximately 5.3 million borrowers in default. This move follows a pause on collections since March 2020, and Education Secretary Linda McMahon criticized previous attempts by the Biden administration to cancel student debt, stating that the executive branch lacks constitutional authority for such actions. The agency expressed concern about borrowers nearing default, with projections suggesting 10 million could reach this status soon, highlighting the need for responsible loan management.

American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies.”

Hundreds of billions have already been transferred to taxpayers. Going forward, the Department of Education, in conjunction with the Department of Treasury, will shepherd the student loan program responsibly and according to the law.”}],

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