The Education Department will begin collection next month on student loans that are in default, including the garnishing of wages for potentially millions of borrowers, officials said Monday.

Currently, roughly 5.3 million borrowers are in default on their federal student loans.

The Trump administration ’s announcement marks an end to a period of leniency that began during the COVID-19 pandemic. No federal student loans have been referred for collection since March 2020, including those in default. Under President Joe Biden, the Education Department tried multiple times to forgive millions of people’s student loans, only to be stopped by courts.

“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” Education Secretary Linda McMahon said.

  • kn0wmad1c@programming.devEnglish
    26·
    4 days ago

    “American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” Education Secretary Linda McMahon said.

    You do realize that the people in default are taxpayers, and this is going to make it worse for them and other taxpayers, right? McMahon is such an idiot.

    • Bob Robertson IX @discuss.tchncs.deEnglish
      16·
      4 days ago

      Not just that, but the government makes money off of student loans.

      Government backed student loans should either charge interest or be exempt from bankruptcy, not both!

    • 2ugly2live@lemmy.world
      4·
      3 days ago

      My favorite is that we’ll still be collateral for irresponsible banks, politicians, tech bros, and war/genocide. But thank God my taxes won’t be paying for someone’s education. 🙃