The education secretary announced the agency will start to collect debts from borrowers who defaulted before the pandemic on May 5th.
The Department of Education announced last month that the Office of Federal Student Aid will begin collecting student loan payments from individuals who defaulted on their debts before the pandemic as of May 5th. The department has not collected anything on defaulted loans since March 2020.
Around 5 million Americans had not paid their debts for 270 consecutive days before the pandemic started. President Trump’s administration implemented a pause on all student loans once the COVID-19 virus spread to the United States, a pause that President Biden’s administration kept in place.
“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” said Secretary Linda McMahon. “The executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear. Hundreds of billions have already been transferred to taxpayers.“
She continued, “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.”
As the Lord Leads, Pray with Us…
- For Secretary McMahon to seek God’s direction as she manages the Education Department.
- For discernment for Acting Under Secretary James Bergeron as he oversees the Office of Federal Student Aid.
- For student loan borrowers who have defaulted to seek the Lord’s wisdom on how to repay the debt.
Sources: ABC 11, Department of Education
