Author Topic: Department of Education to Restart Involuntary Student Debt Collection After Pandemic Pause  (Read 507 times)

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Offline mystery-ak

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Department of Education to Restart Involuntary Student Debt Collection After Pandemic Pause

Katherine Hamilton 21 Apr 2025

The Department of Education (DoE) is gearing up to restart involuntary debt collection for its defaulted federal student loan portfolio after pausing collection during the COVID-19 pandemic, the department announced Monday.

The Office of Federal Student Aid (FSA) will officially resume collections of its defaulted federal student loan portfolio on May 5 — until then, borrowers in default will receive emails from FSA making them aware of the change and offering information and assistance. By summer, FSA will send notices before beginning administrative wage garnishment, according to DoE.

DoE noted that it has not collected on defaulted loans since March of 2020, and while Congress mandated borrower repayment in Oct. 2023, the agency said the Biden-Harris administration “refused to lift the collections pause and kept borrowers in a confusing limbo.” DoE also accused the Biden-Harris administration of failing to process applications for borrowers who applied for income-driven repayment and “continued to push misguided ‘on-ramps’ and illegal loan forgiveness schemes to win points with borrowers and mask rising delinquency and default rates.”

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https://www.breitbart.com/politics/2025/04/21/dept-of-education-to-restart-involuntary-student-debt-collection-after-pandemic-pause/
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Offline IsailedawayfromFR

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None need pity those who have to now repay their loans.

Works in personal and business loans.

The lender must be paid in full.

Otherwise, future lending stops, which is bad for America.
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Offline Weird Tolkienish Figure

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None need pity those who have to now repay their loans.

Works in personal and business loans.

The lender must be paid in full.

Otherwise, future lending stops, which is bad for America.

Sure, but also allow bankruptcy, like they do for regular loans.

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None need pity those who have to now repay their loans.

Works in personal and business loans.

The lender must be paid in full.

Otherwise, future lending stops, which is bad for America.

Easier said than done when the government put lenders in that situation in the first place...remind me again who was President when that happened?

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Offline DefiantMassRINO

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Involuntary Collection of taxes never paused.
Involuntary Collection of mortgage payments never paused.
Involuntary Collection of utility bills never paused.

What makes those with college debt more worthy of a break than the rest of us who have bills to pay?
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Online mountaineer

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I paid off my student loan - ahead of schedule. Man up, snowflakes.


The Democrats are freaking out they're going to have to start repaying their student loans. The government hasn't attempted to collect on 5 million defaulted student loans totally $5 billion for four years.

https://twitter.com/amuse/status/1914704144075551118
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Offline Wingnut

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One would think those folks with Gender and Queer Studies degrees would be rolling the dough by now.  More than enough to have paid down or off their loan debt
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Offline IsailedawayfromFR

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One would think those folks with Gender and Queer Studies degrees would be rolling the dough by now.  More than enough to have paid down or off their loan debt
Like the Senate staffer who decided to sex romp in the Senate Hearing Room who should have become a millionaire selling his filmed escapade. 
“You will never understand bureaucracies until you understand that for bureaucrats procedure is everything and outcomes are nothing.” Thomas Sowell

Offline IsailedawayfromFR

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The Democrats are freaking out they're going to have to start repaying their student loans. The government hasn't attempted to collect on 5 million defaulted student loans totally $5 billion for four years.

https://twitter.com/amuse/status/1914704144075551118
I do hope Trump dissolved the student loan program administered by the feds (begun by Obama) and turn over future loan responsibility to the universities.

Should be simple: Loan the students money to attend their schools and teach the students courses which will land them paying jobs that allow the students to pay back their student loans to the university.

Think those gender and ethnic studies degrees will continue to exist?  If they do, the university goes bankrupt as they would have no recourse than to produce value-adding curricula.
“You will never understand bureaucracies until you understand that for bureaucrats procedure is everything and outcomes are nothing.” Thomas Sowell

Offline Smokin Joe

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I do hope Trump dissolved the student loan program administered by the feds (begun by Obama) and turn over future loan responsibility to the universities.

Should be simple: Loan the students money to attend their schools and teach the students courses which will land them paying jobs that allow the students to pay back their student loans to the university.

Think those gender and ethnic studies degrees will continue to exist?  If they do, the university goes bankrupt as they would have no recourse than to produce value-adding curricula.
I fully agree. It provides incentive to the University to provide a quality and relevant (to the job market) education.

I'd bet a lot of 'fat' would be trimmed.
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