{"id":10488,"date":"2025-04-26T11:21:19","date_gmt":"2025-04-26T11:21:19","guid":{"rendered":"https:\/\/shareinfo24.com\/?p=10488"},"modified":"2025-04-26T11:21:19","modified_gmt":"2025-04-26T11:21:19","slug":"major-alert-for-defaulted-student-loans-a-new-policy-shift-impacts-more-than-5-million-p","status":"publish","type":"post","link":"https:\/\/shareinfo24.com\/?p=10488","title":{"rendered":"Major alert for defaulted student loans: A new policy shift impacts more than 5 million p"},"content":{"rendered":"

Payments on student loans were paused during Donald Trump\u2019s first presidency in response to the COVID-19 pandemic when a huge number of businesses closed and triggered massive job losses.<\/p>\n

However, the Education Department announced Monday it will resume involuntary repayment of federal student loans that are in default.<\/p>\n

They expect this decision to affect over 5.3 million people starting as soon as next month.<\/h2>\n

During Biden\u2019s presidency, he sought to offer forgiveness of the loans but faced opposition from the courts. In 2023, the U.S. Supreme Court ruled his plan to forgive the loans as unconstitutional due to lack of congressional approval.<\/p>\n

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Pexels<\/a><\/figcaption><\/figure>\n<\/div>\n

The main issue with the decision by the Education Department is the short notice borrowers will receive, with only two weeks\u2019 time to prepare.<\/p>\n

\u201cBeginning May 5, the department will begin involuntary collection through the Treasury Department\u2019s offset program, which withholds payments from the government \u2014 including tax refunds, federal salaries and other benefits \u2014 from people with past-due debts to the government,\u201d the Education Department announced.<\/p>\n

According to\u00a0UNILAND<\/a>,\u00a0<\/em>\u201cLoans go into default when borrowers do not make payments for nine months.\u201d Once they report this on the credit scores, it can go to collections.<\/p>\n

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Pexels<\/a><\/figcaption><\/figure>\n<\/div>\n

At the time being, less than 40 percent of student loan borrowers are up to date on their loans.<\/h2>\n

The rest makes the borrowers in default and additional 4 million borrowers who are 91 to 180 days late on their loan payments.<\/p>\n

American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,\u201d Education Secretary Linda McMahon\u00a0said<\/a>.<\/p>\n

\u201cThe Biden Administration misled borrowers: the executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear.\u201d<\/p>\n

\u201cGoing 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 \u2014 both for the sake of their own financial health and our nation\u2019s economic outlook.<\/p>\n","protected":false},"excerpt":{"rendered":"

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