Today, the Office of Federal Student Aid is beginning collections efforts on defaulted federal student loans, formally ending the pandemic-era debt relief. The Department of Education suspended attempts at debt collection in March 2020 for roughly 5 million loans, which were in default prior to the COVID-19 pandemic.
“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” said Education 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 added, “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 guidance as she oversees the Education Department.
- For wisdom for Acting Under Secretary James Bergeron as he heads the Office of Federal Student Aid.
- For the president and members of his Cabinet as they work to improve the financial management of the federal government
