The U.S. Department of Education said Monday it was resuming “unwilling” repayments of its default federal student loans.
Payments were suspended in President Donald Trump’s first term in 2020 in response to the symbiotic pandemic.
“From May 5th, the department will begin involuntary collection through the Treasury Department’s offset program, which will withhold government payments, including tax refunds to the government, federal salaries and other benefits,” the department said in a statement.
After completing her master’s degree, Nicole, a mother of two living in Los Angeles, realized that her full-time job was not enough to pay off student debts, cover expenses and start a family. She decides to revisit one of her childhood past as an alternative to keeping her finances up.
He added that wages will be decorated following the 30-day warning.
An estimated 5.3 million borrowers have defaulted on federal student loans, but the department says it could reach 10 million in just a few months. The repayment will be managed by the US Treasury Department, and affected borrowers will receive notifications over the next two weeks, the statement said in a statement.
President Joe Biden’s management continued to suspend payments under the promise of a campaign to ease student debt, but the U.S. Supreme Court ruled that his plan was not constitutional because it did not fall under Congress’ approval in 2023.
“U.S. taxpayers are not forced to act as collateral for irresponsible student loan policies,” said U.S. Education Secretary Linda McMahon. “The Biden administration has misled the borrowers. The administrative department has no constitutional authority to wipe out debts, and the loan balance will not simply disappear.”
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