Tag Archive for: student loan forgiveness

Trump Admin Gets Serious About Collecting Defaulted Student Loans After Borrowers Got A Pass Under Biden

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The Department of Education (ED) Monday announced it will begin involuntary collection efforts for student loans after a five year pause.

A senior department official told the Daily Caller News Foundation the effort is aimed at removing the burden from taxpayers since involuntary collections were put on pause during the pandemic in March 2020 and never resumed under the Biden administration. ED will begin referring defaulted student loans to collections starting May 5 through the treasury offset program.

“The federal government student loan portfolio has continued to grow and we’ve got a record amount of our borrowers that are at risk of or in delinquency and default,” a senior ED official told the DCNF. “The federal student loan portfolio is headed towards a fiscal cliff if we don’t start repayment and collections.”

Only one in four borrowers are current on their student loans and as many as 4,000,000 borrowers are in late-stage delinquency of between 91 and 180 days, a department official informed the DCNF. About 35% of the federal student loan portfolio are 60 days delinquent and 5.3% have been in default for more than seven years.

“The current administration believes that American taxpayers can no longer serve as collateral for student loans. Student loan debt must be paid back,” the official said.

After a 30-day notice, the department will begin an administrative wage garnishment for unpaid loans beginning in the summer.

The department plans on kickstarting a “significant outreach effort to make borrowers aware of the obligations they have” as well as notifying them of the programs available for repayment, such as the income-driven repayment.

“We wholly believe that Congress has a role to play in fixing the higher education system that puts students in a position where they can afford their loan payments,” the department official told the DCNF. “So we’re looking forward to working with Congress on their efforts to streamline loan repayments as well as lowering college costs.”

Student loan repayments were temporarily paused during the height of the COVID-19 pandemic during the first Trump administration but the pause was continuously extended since. Former President Joe Biden attempted several times to forgive student loan debt, though many efforts were ruled unconstitutional.

AUTHOR

Jaryn Crouson

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All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

Here’s How The Supreme Court’s Latest Term Reshaped America

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The Supreme Court’s most recent term has brought on huge changes to American law, with the court delivering many wins to conservatives.

The 2022-2023 term for the Supreme Court included many high-stakes issues, including race-based admissions by colleges, individual rights of religious expression, the applicability of Native American treaties and more. The court’s conservative majority particularly hit hard on the Biden administration, striking down his student loan forgiveness plan and limiting his regulatory power with the EPA.

On Friday, in Biden v. Nebraska, the court struck down the Biden administration’s plan to grant student loan forgiveness to nearly 40 million Americans, saying that the Biden administration cannot unilaterally cancel student debt using the 2003 HEROES Act. The plan would have canceled $10,000 in student loan debt for non-Pell Grant recipients and up to $20,000 for Pell Grant recipients.

The case 303 Creative LLC v. Elenis ruled in favor of religious rights Friday, with the court finding in a 6-3 ruling that a Christian graphic designer cannot be compelled to create a website for same-sex couples that has messages that violate her religious beliefs. This case comes after the 2018 ruling in Masterpiece Cakeshop v. Colorado Civil Rights Commission, which provided limited protections for a bakery owner who refused to make a cake for a gay wedding.

Colleges and universities will no longer be allowed to use race as a determining factor in admissions after a ruling in two separate cases involving Students for Fair Admissions against Harvard and the University of North Carolina, blocking colleges from using affirmative action policies in both public and private universities. The decision overturned a previous case, Grutter v. Bollinger, in 2003 that held that race could be a factor in the admissions process.

Congressional districting was also considered by the court, which found in a 5-4 decision on June 8 that an Alabama congressional district map violated the Voting Rights Act as it did not give enough influence to black voters. The previous map only had one majority-black district out of seven.

A case involving Native American treaties was examined in Arizona v. Navajo Nation, where the court ruled that the federal government has no obligation to meet the Navajo Nation’s water needs under the 1968 treaty that established the reservation.

In another loss for the Biden administration, the court ruled in May that the Environmental Protection Agency (EPA) overstepped its regulatory authority when telling a couple they could not build on their own property due to the EPA’s ability to regulate “navigable waters.” Sackett v. EPA found that the EPA lacked the power to prevent the couple from building a home on their own land near Priest Lake, Idaho, because it contained wetlands.

The court faced heavy criticism this term, with complaints of ethics violations around paid gifts to justices. A ProPublica report called for Justice Clarence Thomas to resign after it was unveiled that he took paid-for vacations with long-time friend and billionaire Harlon Crow. Conservatives fired back, pointing out trips like those taken by Justice Stephen Breyer that were funded by a Democratic donor.

AUTHOR

WILL KESSLER

Contributor.

RELATED ARTICLE: ‘Expand The Court’: ‘Squad’ Democrats React To SCOTUS Striking Down Biden’s Loan Giveaway

EDITORS NOTE: This Daily Caller column is republished with permission. ©All rights reserved.

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.