Learn about default on federal student loans and the resumption of collections starting May 5, 2025 by the U.S. Department of Education.

The U.S. Department of Education has announced the Office of Federal Student Aid (FSA) will resume collections of federal student loans that are in default on May 5.

  • Makeitstop@lemmy.worldEnglish
    77·
    1 day ago

    In the op-ed, McMahon says, “Why? Not because we want to be unkind to student borrowers. Borrowing money and failing to pay it back isn’t a victimless offense. Debt doesn’t go away; it gets transferred to others. If borrowers don’t pay their debts to the government, taxpayers do.”

    But when businesses need a bailout…

    Also, hilarious coming from this administration. How many bankruptcies has Trump been involved in?

    • Takumidesh@lemmy.world
      8·
      1 day ago

      Debt is a concept not a physical thing, there isn’t anything intrinsic about it that must make it transfer to others.

      If I’m ok with forgiving $5 they my friend owes me for lunch, that doesn’t make the debt mysteriously transfer to a 3rd party.