Student Loan Collections Begin Today

[CaptUSA]

Finally... But look at this ridiculous article.

Collections Are Coming for Millions of Student-Loan Borrowers​

The Education Department on Monday will threaten to confiscate tax refunds, federal benefits and wages​

https://archive.is/jveSU

The Trump administration is starting to put millions of defaulted student-loan borrowers into collections Monday and threatening to confiscate their wages, tax refunds and federal benefits.

There are some five million borrowers whose loans are in default, many of whom haven’t made regular payments since the pandemic. Millions more are on the cusp of default, according to the Education Department.

President Trump has made student-debt repayment a priority, a reversal from former President Joe Biden, who attempted to forgive swaths of student debt. Though a pandemic payment pause ended in 2023, the Biden administration extended a no-consequences period for those who didn’t pay through the 2024 election.
The Trump administration says it doesn’t have the authority to wipe away student debt and must collect on it.

Restarting loan payments—or penalties for not doing so—would be a burden for many Americans. It could sap their spending on everything from new cars to restaurant meals at an already uncertain economic moment.

“It’s a substantial additional cost,” said Rikard Bandebo, chief economist at VantageScore, which tracks consumer credit. “People with the added obligation of these payments are going to have to make harder choices on what they spend on.” <Yeah, unlike those who didn't take out the loans to begin with>

Borrowers put student-loan debt on the back burner during the pandemic, and many say they didn’t know they were supposed to start paying again until they saw their credit scores drop in recent months. Companies that handle payments on the government’s behalf say they have worked to keep borrowers updated on what they owe and when.

Loren Linton, an Indiana-based airplane mechanic, canceled a trip to New York recently so he could afford to pay off more of his roughly $11,000 student-loan balance. He said his automatic payments on his loans stopped due to a technical issue, and he realized there was a problem only when his credit score dropped by nearly 300 points in March.

Linton, 51, has started to work more overtime as he juggles tighter finances, especially because his children are starting as undergraduates themselves in the fall.
“I just feel let down by the whole system because this was supposed to improve our lives, not bring it down,” Linton said. <shut up and pay what you owe! I bought a new truck that was supposed to improve my life, but I'm not expecting anyone else to pay it off, asshole>

Those who haven’t made payments in at least nine months are considered in default and face the most imminent threat of garnished wages, the Education Department said.

The agency said that on Monday it will start putting borrowers into collections, so some are likely to get notices saying so. That starts a clock until the department may start withholding federal benefits such as tax refunds and social security checks, as well as garnishing wages. The first collection measures could start within 30 days, the Education Department said.

The collections process was standard before the pandemic pause. Still, its return is likely to be a strain for borrowers who reoriented their budgets around not paying their loans during the lengthy reprieve.

Many are already facing other economic challenges. New jobs and higher salaries are harder to come by than during the post-Covid boom. Rapid stock-market gains over the past two years have leveled out recently.

The economy has held up well so far, but analysts worry that the brunt of impacts from Trump’s new tariffs is still to come. April data published Friday showed no big rise in layoffs last month, but economists fear that some companies may soon trim payrolls to keep costs in check.

 

[unknown]

Goddam hippies.

 

[PAF]

Well, I'm sure that those tariffs are going to "help" those students make their payments regularly and on time, as well as all of those glorious jobs in the best economy in history! They can even hurry up faster to the loan department in their $10,000 over-retail cars!

Seriously, they should pay those loans back. But what I see here is the cart before the horse. Or the horse before the cart before the horse. Or something I can't make sense of, due to both sides contribute to the problem. Government, fix it and help me!

 

[Snowball]

best thing they can do is have large families and get on the dole

 

[PAF]

best thing they can do is have large families and get on the dole

Trump's IVF:

Some are concerned that folks not ready to have a baby will take the "Trump Perk" before they are actually ready, and that will present another set of problems.

“So who will cover the other $295,000+ to raise a child in the US after the $5,000 baby bonus?”

There again, meddling government in family matters "solutions", coming from the Right. Because increasing the population is such a concern.