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Department of Education to begin collecting on Defaulted Student Loans
Posted on 4/21/25 at 5:26 pm
Posted on 4/21/25 at 5:26 pm
quote:
The U.S. Department of Education today announced its Office of Federal Student Aid (FSA) will resume collections of its defaulted federal student loan portfolio on Monday, May 5th. The Department has not collected on defaulted loans since March 2020. Resuming collections protects taxpayers from shouldering the cost of federal student loans that borrowers willingly undertook to finance their postsecondary education. This initiative will be paired with a comprehensive communications and outreach campaign to ensure borrowers understand how to return to repayment or get out of default.
While Congress mandated that student and parent borrowers begin to repay their student loans in October 2023, the Biden-Harris Administration refused to lift the collections pause and kept borrowers in a confusing limbo.
I must have missed this - I knew student loan repayments restarted a couple of years ago but I didn't realize they hadn't touched the ones that were in default.
LINK
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Posted on 4/21/25 at 5:28 pm to Lightning
I had to pay mine back two thousand years ago?
What’s the problem.
Student loans were treated like IRS payments 40 years ago…
You paid them back or else!
What’s the problem.
Student loans were treated like IRS payments 40 years ago…
You paid them back or else!
Posted on 4/21/25 at 5:33 pm to Lightning
Take the DOE and its employees and turn it into a full time collection agency. Get them out of the states’ reserved right to provide public education.
Posted on 4/21/25 at 5:35 pm to Lightning
It's about time. The Biden-Harris administration was handing out free get out of debt cards. Why is the left so pro-irresponsibility?
Posted on 4/21/25 at 5:37 pm to High C
Anyone who had income and didn’t use the pause to pay down principle at 0% is just trying to milk the system.
I paid off a $5500 loan over that time. I’ve still got a long way to go, but I’m not in default.
At some point, FedGov is going to have to make colleges and universities pony up to a seat at the payback table for gouging students with predatory tuition and fee policies.
I paid off a $5500 loan over that time. I’ve still got a long way to go, but I’m not in default.
At some point, FedGov is going to have to make colleges and universities pony up to a seat at the payback table for gouging students with predatory tuition and fee policies.
This post was edited on 4/21/25 at 5:38 pm
Posted on 4/21/25 at 5:55 pm to Lightning
The government has never been very aggressive at recovering delinquent student loans.
2019 wasn’t really any different from 2020-present
2019 wasn’t really any different from 2020-present
quote:
In the third quarter of last year, for example, less than 2% of federal loans in collections were recovered — just $2.6 billion out of $166 billion.
Posted on 4/21/25 at 5:59 pm to Lightning
i make payments on my tech school loans
Posted on 4/21/25 at 6:05 pm to Lightning
The dipshits that stopped paying and thought “they can’t get us all” are about to be in for a rude arse awakening. I wish I could see the reactions when half their paychecks are garnished and they try to blame everyone but themselves
This post was edited on 4/21/25 at 6:06 pm
Posted on 4/21/25 at 6:48 pm to Henry Jones Jr
Interested to see what this does to credit card and vehicle loan defaults, and the housing market. If people have been able to skate with no consequences for not paying their student loans, has that been propping up other debt payments?
Posted on 4/21/25 at 6:50 pm to Lightning
Sorry freeloaders, the jig is up.
Cough it up or start forfeiting.
Cough it up or start forfeiting.
Posted on 4/22/25 at 4:08 am to bluestem75
Did you know obama adm set up this beautiful scam to collect on loans going into default? They bid out to "contractors" to collect. As an example (I dont know the real figures). If a contractor could make a student pay 3 payments of say 200 bucks, the contractor got a bonus of 2,000 grand.
So the friggin contractors were just making the 3 payments and then getting a huge return on investment. Course they all fell into arrears as soon as it stopped and the students never made a payment.
As a sidenote, you are correct, as soon as the fed gov backed the loans, tuition skyrocketed and a plethora of worthless degrees were offered.
So the friggin contractors were just making the 3 payments and then getting a huge return on investment. Course they all fell into arrears as soon as it stopped and the students never made a payment.
As a sidenote, you are correct, as soon as the fed gov backed the loans, tuition skyrocketed and a plethora of worthless degrees were offered.
Posted on 4/22/25 at 6:21 am to bluestem75
quote:
At some point, FedGov is going to have to make colleges and universities pony up to a seat at the payback table for gouging students with predatory tuition and fee policies.
This is why education costs are insane. There’s no incentive to control them. In fact we’re almost encouraging colleges to spend with reckless abandon
I’m not for forgiveness. But at some point we have to acknowledge the role government has had in creating this mess. Business uses college as free training financed by their employees. Many people required to have “degrees” work in positions where 40 years ago a company would’ve trained the employee to perform the job. And salaries have not increased proportionately to account for the added expense of student loan costs.
I have a stem degree and have made a pretty good living. But that shouldn’t be the only qualifier. Or my wife’s degree, being non-stem, shouldn’t have essentially cost the same as mine. If that makes sense.
This post was edited on 4/22/25 at 6:26 am
Posted on 4/22/25 at 6:25 am to Lightning
quote:muh separation of powers
While Congress mandated that student and parent borrowers begin to repay their student loans in October 2023, the Biden-Harris Administration refused to lift the collections pause
Posted on 4/22/25 at 6:26 am to Lightning
quote:
I didn't realize they hadn't touched the ones that were in default.
Yep, Biden just ignored court rulings and skirted the issue...
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