13h ago

Student loans in default to be referred to debt collection, Education Department says

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.

United States | News & Politics @midwest.social

cm0002 @lemmy.world

12h ago

Student loans in default to be referred to debt collection, Education Department says

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

20 comments

Under President Joe Biden, the Education Department tried multiple times to forgive millions of people’s student loans, only to be stopped by courts.
Both sides, something something.
“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” Education Secretary Linda McMahon said.
You're hurting a large number of those taxpayers by doing this. This is akin to looking for budget cuts by going after who has the smallest amount of funding like NASA and the Arts.
Plus, some countries actually consider investing in their students to improve their overall society. They don't try to make profit off of them while minimizing who can get an education. I think our goals in the US are a bit messed up.
- You're hurting a large number of those taxpayers by doing this.
  That's the point. They want to hurt people.

Oh look, it's me.
- Savor your knee caps while you can. I'm guessing the current administration behave like the mob

What could possibly make him more popular?
- As if anything mattered

Gee, I wonder who stands to profit by sending taxpayer-funded debt collectors after people with no money?
Just take the slush money quietly and leave us alone.

“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.
- 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!
- She asked A-one what to do

Oh man theyre really going to drive a massive depression now.

Ah yes, we need money so let's go after the poor. Surely they'll have money we can take. Urgh /s
- Got to pay for IRS cuts somehow.

How many people are up and current on their loans with zero problems? Let’s check the notes… aaaaand it’s under 40%.

Good luck with that. Lol can't get blood from a stone. Once it goes to collection can it be cleared by bankruptcy? Since collections are now holding the loan?
- To successfully have both private and federal student loans discharged in bankruptcy, you must show that repaying the loans causes an “undue hardship” on you and your dependents. That’s a tougher standard than those who file for bankruptcy must show to discharge credit card debt, personal loans or past-due utility bills. In many cases, however, it’s worthwhile to try to show you meet this standard if you have a case for it.
  There are alternatives to bankruptcy if your loan payments are unaffordable, and since bankruptcy has serious consequences for your credit and financial life, look into those first. If bankruptcy is the right choice for you, here’s how it can wipe out or reduce student loan debt. Source

"You want to try to better your life, but the market demands for employment fluctuate? Go fuck yourself. Either be a psychic and be 100% certain your job is guaranteed or keep being poor, we don't do help here in America. We take, we don't give."
-GOP

5.3 million borrowers
My gosh that's a lot of people. I didn't realize it was so many.
- I expected the number to be much much higher.
  We have had a culture of "no degree, no job" for 3 decades now.
  I'm not forcing my child go to Uni unless he's sure he wants to.

Trump winning on the economy again.

20 comments