Department of education says more than 5 million already defaulted, an additional 4 million in “late-stage delinquency”.
“Borrowers will now be expected to repay their loans, and those who don’t will face involuntary collections,” White House press secretary Karoline Leavitt told reporters Tuesday. “The government can and will collect federal student loan debt by withholding money from borrowers, tax refunds, federal pensions and even their wages.
I remember back 15 years ago they talked about taking 10% of wages for student loans for 10 years and then your debt is wiped regarless of balance left. I remember tons of conservatives flipping out at wage gouging as if paying loans is not gouging with more steps.
If you make 100k for 10 years you pay 100k but if you make 35k with your degree its only 35k. Seemed fair.
right now, that has been the deal if and only if you work for a recognized charitable non-profit, aka public service.
also, they suck at administering this public service program and it has been rife with fuckups from all of the lowest-bid loan servicers they outsourced it to and then had to take it away from for screwing it up.
Let me guess, the government decided they couldn’t set up the public service themselves and instead decided to mostly use it as a way to funnel grants to “non profits” and get cheapish labor in them
precisely.
I was visiting Cuba and talking to this local dude there about higher education and he said, in Cuba, “school is free, but you must do public service to pay it back” which he was unenthusiastic about. I asked “how long?” he said it ranged up to ~2 years for things like medical school.
I wish I could have captured his face when I said the US has a similar program. but it’s all programs, it’s 10 years of public service and they take 10% of your monthly takehome pay for those 10 years.
and if you’re short by 1 month, you still owe everything. and the loans are all at interest from 3-7%.