President Trump is restoring law and order in our country. This isn’t just at the border, in cities and communities, but also when it comes to federal student loans.
On April 21, the U.S. Department of Education announced that it will resume collection of defaulted federal student loans on May 5.
According to the press release, “Today, 42.7 million borrowers owe more than $1.6 trillion in student debt.” More specifically, “More than 5 million borrowers have not made a monthly payment in over 360 days and sit in default—many for more than 7 years—and 4 million borrowers are in late-stage delinquency (91-180 days). As a result, there could be almost 10 million borrowers in default in a few months.”
This action is long overdue because the Biden administration refused to do so, despite Congress mandating that borrowers return to paying on their student loans by October 2023. Furthermore, the Biden administration “failed to process applications for borrowers who applied for income-driven repayment and continued to push misguided ‘on-ramps’ and illegal loan forgiveness schemes to win points with borrowers and mask rising delinquency and default rates.”
These measures by the Biden administration were unlawful because the executive branch does not have the authority to cancel the debt from these loan agreements. Individual borrowers willingly agreed to the terms of the loan, including their financial responsibility to repay the loan. They are financially obligated.
It is unlawful to take the debt of others and force it on everyday Americans who choose not to go to college or have already paid back their loans.
The Trump administration is ensuring that the U.S. Department of Education and the Department of the Treasury will uphold the law and return the student loan program to how it was designed to operate. Borrowers take out loans, and borrowers are held accountable for repaying their loans instead of forcing taxpayers to pay the college debt others incurred.
Of the almost 43 million borrowers with federal student loan debt—totaling more than $1.6 trillion—only 38% are paying their loans on time and are up to date.
A massive communication plan is already underway to get in touch with all the borrowers, ensuring they are aware that they must start repaying their loans. Wage garnishment won’t start until later in the summer and only after borrowers have received sufficient notice and the opportunity to repay their loans.
Click HERE to listen to Dr. Keri D. Ingraham’s interview on NTD News Today, or watch below.