Trump Administration to resume collections on student loan borrowers in default
After a five-year hiatus, the U.S. Department of Education says it will begin resuming collections of defaulted student loans on May 5.
Of the more than 42.7 million student loan borrowers in the U.S., who owe a collective $1.6 trillion, the department says that more than 5 million have not made a payment in the past year. That number is expected to grow as an additional 4 million borrowers are approaching default status.
“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” U.S. Secretary of Education Linda McMahon said in a statement.
The department said it will begin notifying borrowers who are in default via email over the next two weeks, urging them to make a payment or to enroll in a repayment plan, and referring them to a government website providing information on how to do so.
Then, on May 5, the department will begin referring borrowers who remain in default to a collections program run by the Treasury Department.
“This could not have come at a worst time for millions of Americans,” said Aissa Canchola Bañez, Policy Director for the Student Borrower Protection Center, a nonprofit group that aims to reduce student debt. Those borrowers, she added, “are already finding themselves having to navigate such incredible economic uncertainty over the last few months.”
She also points to the fact that older borrowers tend to face the greatest struggles in repaying their loans: nearly 40 percent of federal borrowers over the age of 65 were in default on their student loans, according to a 2017 report from the Consumer Financial Protection Bureau. “These are older folks who are on fixed incomes,” she says.
When borrowers fall behind, Bañez added, their credit scores can take a hit, making it harder to qualify for more credit and other loans for things like housing and other basic needs.
The Education Department said in its notice that, later this summer, it will begin the process of garnishing wages—meaning payments would be automatically deducted from borrowers’ paychecks.
The manhunt for Eric Rudolph was the largest in US history: How it began. How it finally ended
Eric Rudolph planted a bomb in 1998 at a Birmingham clinic that performed abortions. A new podcast explores the massive manhunt assembled to find him, and how his words and actions are possibly more accepted now, than they were then.
Trump’s dream of building a ballroom at the White House is becoming a reality
After at least 15 years of talking about it, President Trump is building a ballroom at the White House. Work will begin this September, with a price tag of $200 million, the White House says.
An MMA fighter Trump hosted at the White House loses appeal in his rape case
Mixed martial arts fighter Conor McGregor used to be the face of the Ultimate Fighting Championship. President Trump, a UFC fan, hosted him at the White House for St. Patrick's Day this year.
What Leikeli47 hid behind her mask
On the heels of her new, independent album, Lei Keli ft. 47 / For Promotional Use Only, the artist speaks candidly about the mask that once gave her freedom and the fight for creative autonomy.
In reversal, Defense Department will continue providing crucial satellite weather data
About a month after announcing that it would stop sharing data that hurricane forecasters and scientists rely on, the Navy now says it will continue distributing it.
Trump announces 90-day extension of prior trade deal with Mexico
President Trump, who has insisted Aug. 1 is a firm deadline for countries around the world, said that "the complexities of a Deal with Mexico are somewhat different from other Nations."
