Trump administration to resume defaulted student loan collections

White House plans to take tax refunds and wages from student loan defaulters Source: Reuters

Transcript

00:00In other news, the Trump administration has announced we will put an end to Joe Biden's

00:04illegal student loan bailout attempts. No student loan has been referred to collection since March

00:09of 2020. That comes to an end. On May 5th, the Department of Education will resume involuntary

00:16collections for borrowers with defaulted federal student loans. The student loan portfolio controlled

00:21by the federal government is nearly $1.6 trillion, but fewer than four out of 10 borrowers are in

00:28repayment. This is unsustainable, unfair, and a huge liability for American taxpayers. Debt

00:36cannot be wiped away. It just ends up getting transferred to others. So why should Americans

00:40who didn't go to college or went to college and responsibly paid back their loans pay for

00:45the student loans of other Americans? The Trump administration will never force taxpayers to

00:50pay student loan debts that don't belong to them. Student loan borrowers need clarity, and

00:55we're finally giving it to them. Borrowers will now be clearly expected to repay their

00:59loans, and those who default on their loan obligations will face involuntary collections.

01:05The government can and will collect defaulted federal student loan debt by withholding money

01:09from borrowers, tax refunds, federal pensions, and even their wages. America is $36 trillion

01:15in debt. We must get our fiscal house in order and restore common sense to our country. If

01:20you take out a loan, you have to pay it back. It's very simple.