The White House targets Biden-era student loan forgiveness plans
Dana Perino, co-anchor of “American Newsroom,” joins Fox & Friends, to close the Biden-era student loan forgiveness program and discusses the White House’s efforts to share insights from her new book, “I Someone Says to Me.”
According to the White House, those who refuse to pay federal student loans or refuse to pay federal student loans could earn wages, federal pensions and tax refunds.
White House press secretary Karoline Leavitt told reporters that the Trump administration will not burden taxpayers, but will chase after people who don’t pay off their loans.
“The government can collect default federal student loan obligations by withholding money from borrowers, tax refunds, federal pensions and even wages,” she said.
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People who default on federal student loan debt can pay wages. The Trump administration said Tuesday that tax refunds and federal pensions were acquired. (Getty Images)
The Department of Education said Monday that it will resume its default federal student loan collection in May for the first time since 2020. The student loan portfolio is close to $1.6 trillion, Leavitt said four out of 10 borrowers are speeding up on loans.
Overall, officials said there are 4 million borrowers in late stages of payments. In other words, payments are 180 days late from 91 days.
“This is unsustainable, unfair, and a huge responsibility for American taxpayers. You can’t wipe out your debts. You’ll end up being transferred to someone else,” she said. “So why should you not go to college or go to college and pay the loan responsibly and pay the student loan payments for other Americans?
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Student loan borrowers requested that students’ debt be cancelled immediately at a meeting outside the Supreme Court on June 30, 2023 in Washington, DC (Getty Images).
In a few months, the default could be nearly 10 million people, the education department said.
The Biden administration has tried to bail out millions of student loan borrowers, but in some cases they have been blocked.
“U.S. taxpayers are not forced to act as collateral for irresponsible student loan policies,” Education Secretary Linda McMahon said. “The Biden administration misunderstood the borrowers. The administration has no constitutional authority to wipe out debts, and the loan balances have not just been eliminated, but hundreds of billions have already been handed over to taxpayers.”
The Trump administration has long said that taxpayers should not make trillions of dollars in student debt.
On Tuesday, the Trump administration said it would chase wages, pensions and tax refunds to curb federal student loan obligations. (Olivier Douliery/AFP via Getty Images)
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“We have to settle our finances and restore common sense to our country,” Levitt said. “If you take a loan, you need to pay it back. It’s very easy. President Trump won’t drive away the cans anymore.”
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