Over strong objections from Democrats, House Republicans on the Education and the Workforce Committee advanced legislation Tuesday that would make dramatic changes to the federal student aid system. The sweeping 103-page bill, known as the Student Success and Taxpayer Savings Plan, passed on a party-line vote after more than five hours of debate. The legislation
The change will lead to garnished wages and benefits for more than 5 million Americans starting this summer. Collection of defaulted student loans to resume May 5: What to know Since the pandemic, federal student loan borrowers have been mostly protected from the harshest consequences of defaulting. That’s about to change on May 5. WASHINGTON
Borrowers in default could see their tax refunds or other federal benefits withheld once collections resume. J. David Ake/Getty Images The Education Department will resume collecting on defaulted student loans early next month, restarting a system that’s been on hold since spring 2020, the agency announced Monday. Starting May 5, the department will withhold tax refunds
A day after White House officials said the Education Department would administer the student loan program, President Donald Trump announced that the Small Business Administration would be taking over the $1.7 trillion portfolio. He told White House reporters that the move would happen “immediately,” though he didn’t say how that process would work. Currently, federal law