Biden fails again.
Student Loan Default Crisis Returns—And Taxpayers Are on the Hook
More than 5 million Americans in student loan default will start receiving collection notices this week, as the Department of Education resumes enforcement after a years-long pause.
⚠️ Wage garnishment, Social Security withholding, and seized tax returns are now back on the table.
Why Are Collections Resuming?
The federal government halted loan collections in March 2020, citing the COVID-19 pandemic. But the Biden administration repeatedly extended the pause, even after the crisis ended—leaving taxpayers holding the bag.
According to the Department of Education, this move is meant to:
- Protect taxpayers from “shouldering the cost of federal student loans”
- Resume collections on May 5th, 2025
- Address delinquent accounts, some unpaid for over 7 years
Shocking Student Loan Statistics:
- 42.7 million Americans owe over $1.6 trillion
- Over 5 million are in default, with no payments in 360+ days
- Another 4 million are seriously delinquent (91–180 days late)
- Nearly 10 million borrowers could be in default by year’s end
Biden’s Empty Promises Now Backfire
Despite Congress mandating repayment begin in October 2023, the Biden-Harris administration delayed enforcement to appease younger voters before the 2024 election.
“The Constitution does not give the White House authority to cancel debts unilaterally,” said Education Secretary Linda McMahon.
“The American people—especially seniors—should not be punished for others’ unpaid loans.”
What Happens Now?
The Federal Student Aid Office (FSA) will:
- Contact defaulted borrowers by email
- Encourage income-driven repayment plans
- Warn about wage garnishment, tax refund seizure, and Social Security withholding
Borrowers must contact the Default Resolution Group to avoid escalating penalties.
Retirees Beware: Your Benefits Are at Risk
For older Americans living on fixed incomes, this shift means more than politics—it could mean losing part of your Social Security check to cover someone else’s unpaid loan.
Many conservatives have warned that Biden’s loan schemes would eventually backfire—and now, millions of working families and seniors are left picking up the tab.
