Trump Admin Ends Biden Loan Pause, Accuses Colleges of Profiting off Students
The Trump administration is now stepping up its criticism of former President Joe Biden’s controversial student loan forgiveness program, with Education officials warning that the initiative is coming to an end.
Linda McMahon, Secretary of the U.S. Department of Education, is taking the lead in defending the administration’s decision to resume student loan collections, which had been paused for years.
McMahon announced that, starting in May, the department would begin working with over 5 million borrowers who are currently in default due to the extended forbearance, which many argue has only worsened the financial burden on students.
In a scathing Wall Street Journal op-ed, McMahon placed significant blame on both Biden and university administrators.
She accused them of profiting from federal student loans, inflating tuition, and ignoring the long-term consequences for students who were led to believe that debt forgiveness was an easy solution to their financial struggles.
“Universities have raised tuition rates while amassing billions in endowments and funding their bloated bureaucracies, all with the help of federal loans,” McMahon wrote, according to Trending Politics.
She pointed to a 2015 study showing a direct correlation between federal loan caps being raised and tuition increases, which many believe has exacerbated the problem of unaffordable education.
The Biden administration’s handling of the student loan crisis has faced consistent legal setbacks, with critics arguing that the program was built on false promises.
Fox News anchor Dana Perino remarked on “Fox & Friends” that the “gravy train is over,” stressing that the reliance on federal funding for universities to maintain unsustainable tuition costs could no longer continue.
“We empathize with the millions burdened by student loans, but forgiving this debt across the board is not the solution,” Perino added. “There are other ways to reform the system, but everyone needs to pay back what they owe.”
McMahon’s remarks follow the announcement that the Department of Education will no longer extend the zero-interest, zero-accountability forbearances that became commonplace under the Biden administration.
Instead, the department will start placing borrowers back into repayment plans and restarting collections for loans that have been in default for years.
“Borrowing money and failing to repay it has real consequences,” McMahon said, explaining that the government has to recoup the funds somehow, or taxpayers will ultimately be forced to bear the burden.
As part of the new strategy, borrowers who don’t make timely payments could see their credit scores drop and even face wage garnishment.
The Trump administration is framing the resumption of student loan payments as a necessary correction to a system that allowed college tuition to spiral out of control.
This decision, according to McMahon, will ultimately address the unsustainable nature of the higher education system while ensuring that students are held accountable for their financial commitments.
While the Biden administration’s student loan forgiveness plan was lauded by many borrowers who hoped to be relieved of their debt, it faced significant opposition from conservatives and education reformers, TP reports.
Now, with the resumption of loan collections, many are calling for deeper reforms to ensure that higher education is both affordable and accountable.
“Ending this dishonest and irresponsible policy is long overdue,” McMahon concluded. “The reality is, the federal government cannot continue to fund an ever-growing debt that places the financial burden on American taxpayers.”
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