Student loan borrowers are facing the backfire now

Millions Student loan The virtual borrowers will start receiving notifications on Monday that they are placed in groups.

This step comes yet Ministry of Education He said last month that he was trying to protect American taxpayers, “who is overwhelmed by the cost of federal students’ loans that borrowers pledged good to finance their education after the secondary stage. ”

“American tax motivations will not have to work as a guarantee of irresponsible student loan policies,” Linda McMahon, Minister of Education, said in a statement. “The Biden administration has misled the borrowers: The executive authority does not have the constitutional authority to wipe the debt far, and the assets of loans are not simply disappeared.”

the The Ministry of Education said The “Federal Student Assistance Office (FSA) will resume the underdeveloped student loan portfolio groups on Monday, May 5”, after not doing this since March 2020, which was the beginning of the Corunaf virus.

Here is the reason for the decrease in the degree of credit in the United States

“Today, 42.7 million borrowing condemns more than $ 1.6 trillion of students’ debts,” according to the administration. “More than 5 million borrowers did not pay the monthly payment in more than 360 days and sit in a state of shortening for more than 7 years-and 4 million borrowers in a late stage of the stage (91-180 days). As a result, there may be approximately 10 million borrowers in the default within a few months.”

The administration added, “All borrowers in the failure to pay will receive contacts via e -mail from FSA … urging them to contact the virtual decision group to conduct a monthly payment or register in a payment plan that relies on income or subscribing to the rehabilitation of loans,” the administration added. “Later this summer, FSA will send the required notifications that start with administrative wage clothes.”

Bilt Rewards launches a new program to help students

A pause in payments ended during the epidemic in 2023, but the Biden administration extended to the period of non -response during the 2024 elections where the former president tried to pass loan programs, according to what it said. Wall Street Journal.

While Congress has assumed that student and father borrowers start paying student loans in October 2023, Biden Harris administration Refusing to raise the groups stop and keep borrowers to fold the confusing. The previous administration failed to address requests to borrowers who applied for income paid payment and continued to pay the illegal forgiveness plans “on the slopes” and “the Ministry of Education”.

Click here to read more on Fox Business

Possible penalties for those disappeared include blocking federal benefits such as tax declarations and social security checks, Wall Street Magazine I mentioned.