Posted on 05/07/2025 12:43:45 PM PDT by God luvs America
The U.S. government will begin seizing federal benefits from 195,000 student loan defaulters in June, with wage garnishment notices set to reach 5.3 million borrowers later this summer, the Education Department announced on May 5, marking the formal restart of involuntary collections after a years-long pause.
The renewed enforcement effort begins with the Treasury Offset Program, which allows the federal government to intercept tax refunds, Social Security checks, and other federal payments to recover unpaid student debt. Borrowers affected by the program began receiving notices on May 5, the department said.
“Starting today, approximately 195,000 defaulted student loan borrowers will begin receiving an official 30-day notice from the U.S. Department of Treasury notifying them that their federal benefits will be subjected to the Treasury Offset Program,” the Education Department said in the May 5 announcement.
Following the notice period, administrative wage garnishment will begin later this summer for all 5.3 million borrowers who remain in default. Guaranty agencies have also been authorized to resume involuntary collections on defaulted loans under the Federal Family Education Loan Program, the department stated.
(Excerpt) Read more at theepochtimes.com ...
Welcome to the real world Neo! Entitled little f.....
Something tells me there weren’t any serious students getting loads in this group. Not many nurses and engineers.
Part of me feels bad for the journalism, philosphy, history, and fashion design majors who let their loans default while they still work at starbucks.
Treat Student Loan defaulters the same as IRS defaulters.
Which part of you feels bad?
They should be treated like any other loan.
Which part of you feels bad?
~~~
Just clipped my nails. It’s gone.
See, I’ve kept up with my payments, even through the Covid suspension.
*I* will not have federal payments intercepted. *I* will not have wage garnishment.
That is because I have been *responsible*.
Lots of nurses.
“Part of me feels bad for the journalism, philosphy, history, and fashion design majors who let their loans default while they still work at starbucks”
Part of me as well, and that part fell off of my head and onto my pillow last night. I brushed it off, it will be vacuumed up tomorrow.
“Lots of nurses”
Seems to be some of them are in the process of going on strike in Los Angeles, good luck with that.
The part that thinks we should collect from university endowments instead of trying to squeeze blood from the heavily indoctrinated, poorly educated stones they churned out.
Anytime the government can take your wages for a debt it is a bad thing. I understand the whole tax liens, but these are loans. What keep private sector institutions from doing this if the government can?
The downside is that these millions will probably never dig themselves out of debt nor get married nor purchase homes nor raise children.
From Investors Business Daily 2015: The Real Student Loan Crisis Is The One Obama Created https://www.investors.com/politics/editorials/obama-created-student-loan-crisis-with-1-trillion-in-loans/
Delinquent IRS payments are not loans. But I do feel bad for innocent victims of IRS goons.
And yes, some states allow wage garnishment if a customer defaults on a personal loan.
Your brain feels bad?
“That is because I have been *responsible*.”
That does it! We’re gunna need proof of life!
Many of the loans were outright fraudulent transactions where there was never any intent to go to school or pay back the loans.
Obama operatives expanded the list of qualifying "schools" to include such things as fly by night beauty schools, hair weave and finger nail training. Some of the qualifying "schools" were no more than sham organizations that fraudulently colluded with "students" to apply for and obtain school loans.
Once the Student loan money was distributed, the fraudulent, "school" split the cash with the "student" as fraudulent "tuition payments" to the school and the "student" just took the money and spent it. There was never any teachers or school - just a shell organization to justify the loans and both sides just took the money and ran.
In other cases, sincere,, well intention students were scammed by phony "educational institutions that took their money and left them with nothing to show for theirs efforts.
There a billions of dollars of these types of non performing student loans on the books and the Democrats are desperate to discharge the debt to cover up the fraud.
What a difference a sane administration makes! Instead of “forgiveness” we have pay up, honky! As it should be!
Along with interest I hope
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