The Secretary of Education, Linda McMahon, discusses the efforts to resume the collections on the default student loans and the University of Harvard continuing the Trump administration for a “results” freeze freeze gel.
Millions of student loan Default borrowers will start to receive opinions on Monday that they are placed in collections.
This decision comes after Department of Education said last month that he was trying to protect taxpayers from us “against federal student loan costs that borrowers have readily undertaken to finance their post -secondary studies”.
“American taxpayers will no longer be forced to serve as a guarantee for irresponsible student loan policies,” said education secretary Linda McMahon in a statement. “Administration Biden has misleaded borrowers: executive power does not have the constitutional authority to erase debts, and loan sales do not disappear either.”
THE Department of Education said His “Office of Federal Student Aid (FSA) will resume the collections of his Federal Portfolio of Student Loan by default on Monday May 5”, after not having done so since March 2020, which was the start of the coronavirus pandemic.
Here is why the average American credit rating decreases
President Donald Trump speaks to the media after having signed decrees relating to higher education institutions, alongside the secretary of commerce Howard Litnick, and the Secretary of Education Linda McMahon, on the right, in the oval office of Hous Blanc (Saul Loeb / AFP via Getty Images / Getty Images)
“Today, 42.7 million borrowers owes more than $ 1.6 billion of student debt,” according to the ministry. “More than 5 million borrowers have not made a monthly payment in more than 360 days and have been sitting in default – many for more than 7 years – and 4 million borrowers have been delinquency at a late stadium (91-180 days). Consequently, there could be almost 10 million default borrowers in a few months.”
“All of the default borrowers will receive communications by email from the FSA … The exhortant to contact the default resolution group to make a monthly payment, register for a income focused on income or registration for loan rehabilitation,” added the ministry. “Later this summer, the FSA will send the required opinions starting the administrative salary intercourse.”
Bilt Rewards is launching a new program to help student debt
An American flag and a flag from the Ministry of Education fly outside the building of the Ministry of Education in Washington, DC, in February. (Photos Reuters / Annabelle Gordon / Reuters)
A pause of payments during the pandemic ended in 2023, but the Biden administration extended this period without consequences until the 2024 election, according to the former president The Wall Street Journal.
“While the Congress demanded that students and borrowers of students and parents are starting to reimburse their student loans in October 2023, the Biden-Harris administration refused to lift the collections break and kept the borrowers in confusing limbo. The previous administration did not succeed in processing the requests for borrowers who requested reimbursement focused on income and continued to push erroneous “ramps on ramps” and illegal loansing schemes to earn points with borrowers and the growing delinquency mask, “said the Ministry of Education.
Linda McMahon testifies before an audience on the health of the Senate, education, work and pensions to examine his candidacy to be secretary of education on February 13 in Washington, DC (Ricky Carioti / The Washington Post via Getty Images / Getty Images)
Click here to find out more about Fox Business
Potential penalties for people failing that include retention of federal advantages such as income declarations and social security checks, The Wall Street Journal reported.