After a five-year hiatus, the U.S. Department of Education has announced that collections on defaulted federal student loans will resume on May 5, 2025. This move ends the pandemic-era pause that began in March 2020 but was extended by Biden after that. This new plan signals a shift towards fiscal responsibility. Cue the moans and groans from the Democrats and the borrowers about how unfair it all is.
Fox News reports that 60% of students are behind in their payments, with about four million borrowers in late-stage delinquency and five million who will have their loans set for collection on May 5th. The resumption of collections will involve measures such as wage garnishment and the withholding of federal tax refunds and Social Security benefits.
Education Secretary Linda McMahon emphasized that the federal student loan portfolio, totaling over $1.6 trillion, cannot be sustained without repayment. She stated, “American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies.”
Borrowers in default will receive communications from the Department of Education outlining options to return to good standing, including loan rehabilitation programs. However, involuntary collections will proceed for those who fail to take action.
The Leftist media is already up in arms, declaring this the death knell for the already “failing” Trump economy. ABC News laments that this money can no longer be “otherwise spent,” supposedly “drying up some economic activity.”
Some advice to the five-year freeloaders: dust off that budget spreadsheet and maybe learn how to make coffee at home instead of going to Starbucks every morning. Get a job, maybe two jobs like some of us did when we took out our own student loans. The government isn’t your sugar daddy anymore. You signed the dotted line, you took the classes (or at least showed up for syllabus day). Now it’s time to act like an adult and pay the money back. After five years of free passes, the freeloading gravy train has finally pulled into the station.
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