https://apnews.com/article/student-loan-debt-default-collection-fa6498bf519e0d50f2cd80166faef32a

https://archive.is/76E4Z

WASHINGTON (AP) — 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.

Thanks, Biden.

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 give broad forgiveness of 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.

Jump up your own ass and choke on your own shit

Beginning May 5, the department will begin involuntary collection through the Treasury Department’s offset program, which withholds government payments — including tax refunds, federal salaries and other benefits — from people with past-due debts to the government. After a 30-day notice, the department also will begin garnishing wages for borrowers in default.

Thanks Biden.

The decision to send debt to collections drew criticism from advocates, who said borrowers had experienced whiplash and confusion with the changing student loan policies between the Biden and Trump administrations.

Thanks Biden.

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.

Already, many borrowers have been bracing for obligations coming due.

Thanks, Biden.

In 2020, President Donald Trump paused federal student loan payments and interest accrual as a temporary relief measure for student borrowers. The pause in payments was extended multiple times by the Biden administration through 2023, and a final grace period for loan repayments ended in October 2024. That meant tens of millions of Americans had to start making payments again.

Thanks Biden.

Borrowers who don’t make payments for nine months go into default, which is reported on their credit scores and can go to collections.

-500 fico credit score, thanks Biden.

Along with the borrowers already in default, around another 4 million are 91 to 180 days late on their loan payments. Less than 40% of all borrowers are current on their student loans, department officials said.

Thanks biden

Layoffs at the Federal Student Aid office at the Education Department have made it harder for students to get their questions answered, even if they wanted to pay their loans, said Kristin McGuire, executive director for Young Invincibles, a group that focuses on economic security for younger adults. And questions are swirling about certain income-driven repayment programs after a February court ruling blocked some Biden-era payment plans, placing borrowers in the more lenient SAVE Plan in forbearance. The Education Department in February took down applications for income-driven repayment programs — which tie a monthly payment to a person’s income level — only to bring them back online a month later.

Thanks Biden and Elon

“Things are really difficult to understand right now. Things are changing every day,” McGuire said. “We can’t assume that people are in default because they don’t want to pay their loans. People are in default because they can’t pay their loans and because they don’t know how to pay their loans.”

Thanks Biden and Elon

For borrowers in default, one step to avoid wage garnishment is to get into loan rehabilitation, said Betsy Mayotte, president of The Institute for Student Loan Advisors. Borrowers must ask their loan servicer to be placed into such a program. Typically, servicers ask for proof of income and expenses to calculate a payment amount. Once a borrower has paid on time for nine months in a row, they are taken out of default, Mayotte said. A loan rehabilitation can only be done once.

That’s pretty fucked up.

Biden oversaw the cancellation of student loans for more than 5 million borrowers. Despite the Supreme Court’s rejection of his signature proposal for broad relief, he waived more than $183.6 billion in student loans through expanded forgiveness programs.

Yeah that’s why the student loan debt is higher than when Biden took office.

In her statement Monday, McMahon said Biden had gone too far.

Anything that isn’t turning debt slaves into literal slaves is too communist for McMahon

“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, which means helping borrowers return to repayment — both for the sake of their own financial health and our nation’s economic outlook,” she said

Translation: They’re gonna abuse every possible avenue of legality, and if they don’t have that federal authority, to turn the youth of the country into indentured workers akin to tenant farmers or literal slave labor depending on whether or not they can squeeze you for more of your blood money.

Also that money’s gonna go directly into the military industrial complex and be used to murder more people around the globe, so don’t worry about wondering if your stolen wealth is being used positively for the benefit of humanity.