Student loan borrowers in default are now facing debt collections
Education Minister Linda McMahon discusses efforts to resume groups on backward student loans and Harvard University, which suggests the Trump administration about freezing financing on the “final result”.
Millions of borrowers in student loans will start receiving notifications on Monday that they are being placed in groups.
The move comes after the Ministry of Education said last month that it is trying to protect the American taxpayers “who” overwhelmed the cost of federal student loans that borrowers pledged good to finance their education after the secondary stage. ”
“American tax motivations will not have to work as a guarantee of irresponsible student loan policies,” Linda McMahon, Minister of Education, said in a statement. “The Biden administration has misled the borrowers: The executive authority does not have the constitutional authority to wipe the debt far, and the assets of loans are not simply disappeared.”
The Ministry of Education said that the Federal Aid Office for Students (FSA) will resume groups of the underdeveloped student loan portfolio on Monday, May 5, “after not doing this since March 2020, which was the beginning of the Koronverus virus.
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President Donald Trump speaks to the media after the signing of executive orders related to higher education institutions, along with the Minister of Commerce Howard Lootnick and Minister of Education Linda McMahon, in the Oval Office, in the White Oval Office (Saul Loeb / AFP via Getty Images / Getty Images)
“Today, 42.7 million borrowing condemns more than $ 1.6 trillion of students’ debts,” according to the administration. “More than 5 million borrowers did not pay the monthly payment in more than 360 days and sit in a state of shortening for more than 7 years-and 4 million borrowers in a late stage of the stage (91-180 days). As a result, there may be approximately 10 million borrowers in the default within a few months.”
The administration added, “All borrowers in the failure to pay will receive contacts via e -mail from FSA … urging them to contact the virtual decision group to conduct a monthly payment or register in a payment plan that relies on income or subscribing to the rehabilitation of loans,” the administration added. “Later this summer, FSA will send the required notifications that start with administrative wage clothes.”
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The American flag and the flag of the Ministry of Education fly outside the building of the Ministry of Education in Washington, DC, in February. (Reuters photos / Annapil Gordon / Reuters)
The stoppage period ended during the epidemic in 2023, but the Biden administration extended that period that could not respond during the 2024 elections, when the former president tried to pass loans programs, according to the Wall Street Journal.
“While congress imposed that student borrowers and parents started paying their student loans in October 2023, the Biden Harris administration refused to raise groups that stop temporarily and keep borrowers in a state of confusion. The Ministry of Education said:
Linda McMahon witnesses the health, education, work and pensions session in the Senate to study her nomination to be the Minister of Education on February 13 in Washington, DC. (Ricky Carioti / The Washington Post via Getty Images / Getty Images)
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The Wall Street Journal reported that the possible penalties for those who fail to pay include blocking federal benefits such as tax declarations and social security checks, according to Wall Street Journal.
2025-05-05 11:35:00
