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Posted on 03/20/2026 4:40:11 AM PDT by Libloather
WASHINGTON — Education Secretary Linda McMahon is sending a letter to 43 million Americans with student loans — about 9 million of whom are in default — to notify them that the Treasury Department is taking over debt collection, The Post has learned.
The letter describes the transfer of responsibilities as a way to protect taxpayers by improving the efficiency of the collection process — after loan repayments were paused through much of the Biden administration, with borrowers protected from delinquency through September 2024.
“For too long, Americans have shouldered the consequences of poor leadership and persistent mismanagement of our federal student aid portfolio. Today’s actions reclaim integrity and accountability for you, the American people,” McMahon writes in the letter shared with The Post ahead of the mass-mailing.
There’s currently $1.7 trillion in outstanding student debt — roughly 25% of which, or $425 billion, was believed to be in default as of last year.
The move gives new responsibilities to Treasury Secretary Scott Bessent, whose department’s Bureau of the Fiscal Service is taking on the collection role.
The Education Department, McMahon wrote, “has proven woefully unable to collect on debt owed to taxpayers.”
“The previous Administration created a web of confusion, leaving borrowers uncertain about their repayment obligations, and lacking the tools and support to get back on track,” the education secretary wrote.
“The status quo has failed our students and mired our nation in financial stalemate. It’s time for an entity with deep experience in finance and banking to support this major fiscal responsibility.”
(Excerpt) Read more at nypost.com ...
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Yep. Put down the joint and get a job
Government Academia Complex. Designed to make you soft and a debt slave.
I’m sure that degree in women’s studies will
be more than adequate to pay their debts.
Ed McMahon? He used to send me letters too.
Give them a choice: 1) Repay the money that you agreed to borrow and make payments for 5-30 years. 2) Enlist in the military for 4 years in newly formed “re-education” programs.
You can’t handle us bots. We know who you are.
Imagine how affordable college would be if academia was subject to natural market forces. Imagine how much improved the curricula would be if student customers were more choosy with spending their own precious dollars. Imagine how improved education would be if students were acutely aware of what it took to acquire those dollars to spend on education.
I’m removed from the whole thing, since I am old and went to college a long, long time ago. But it seems to me that these loans have been sort of dormant for a long time, and during that time, I don’t believe that interest was accruing. Any sensible person would have been making payments or setting aside money during this interest-free time. To just sit and do nothing until the loans become “real” again was not a smart strategy. But maybe I’m missing something.
all student loan repayments should go directly into the social security trust fund. That way any future liberal who tries to end repayment has to deal with the backlash of hurting social security.
I follow some reddit sites on student loans and these young people are angry about how they were not fully understanding the loans used to cover tuition and were told how wonderful they were.
This is the culture of victim hood.
I like your idea but the military needs people with skills. Instead I would propose another civilian conservation corps type program (About the only government program that worked with lasting effects)
Four year hitch minimum. Whatever the hourly rate of labor is to make up the debt. Grunt labor on multiple infrastructure projects. Some may be commensurate with the academic degree earned. Most will not.
If their debt stretches beyond four years, they will have a choice of re-enlisting or paying the balance through funds raised otherwise.
They will be given a stipend and will live in bunkhouses with common eating areas.
CCC built most of the trail systems in our National Parks. Many of them need repair and new trails can be cut. Forest roads can be maintained.
Lol!
The Ed Dept needs to be abolished anyway.
And (aside from any GENUINE, not phony BS, hardship cases), people who are extended credit should be held to honor their obligations and repay them as they agreed. No borrower is “entitled” to just pocket and walk away with other peoples’ (tax) money for free.
Joe Biden lied to them but in his defense, he had Dementia.
Good. I worked midnight shift in a steel mill to pay my way through college. Of course college was less expensive in the early ‘70s.
Why is the government even in the loan business? Any loan business...
Another avenue for fraud, graft, and corruption.
Pay your bills snowflakes.
I worked the swing shift in a bank processing dept where I learned about computers. This was in the med 60s. Yes tuition was much lower but so was the pay. Oh spring break! Great as I could work more hours.
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