Linda McMahon, who served as education chief under President Trump, defended restarting student loan collections. She said the Biden administration allowed colleges to profit while students piled up debt. In an opinion piece for the Wall Street Journal, McMahon criticized Biden’s loan forgiveness plans. She said colleges took advantage of students by making false promises. At the same time, they raised tuition and grew their endowments. McMahon said this made it harder for students to succeed while universities got richer. Trump’s Education Boss emphasized these points strongly.
Student Loan Collections Will Restart for Millions in May
The Department of Education has announced that loan collections will begin again on May 5. This applies to about 5.3 million borrowers who are currently in default. These borrowers haven’t made payments in over a year. Some haven’t paid in more than seven years. McMahon said this restart is necessary. She believes loan forgiveness has gone too far. She warned that letting people avoid payments for too long leads to bigger problems for taxpayers and the economy. Trump’s Education Boss believes firm actions are needed.
Federal Loans Helped Schools Raise Tuition, Not Help Students
McMahon pointed to a 2015 study to back her claims. It found that for every extra dollar allowed in federal loan programs, colleges raised tuition by 60 cents. She said many of these schools still call themselves nonprofits. But they continue to profit from the federal loan system. While students borrow more, colleges keep charging more. In the end, students graduate with high debt and few job prospects. Trump’s Education Boss cited these issues clearly.
Many College Programs Are Worthless in the Job Market
McMahon criticized degree programs that don’t lead to good jobs. She said these programs still qualify for federal loans, even though they don’t help students earn money. Yet, colleges keep offering them. They also continue encouraging students to take on debt to pay for them. McMahon said this isn’t fair. She believes schools should be responsible for the financial harm they cause. Trump’s Education Boss has consistently pushed for accountability.
Loan Forgiveness Was a Political Move, Not Real Help
According to McMahon, Biden used loan forgiveness as a campaign tool in 2020. She said he offered to cancel debt to win votes from young people. But she claims he didn’t have the legal power to do that. McMahon said this promise led many students to believe they didn’t need to repay their loans. Now, those debts are overdue. She called Biden’s policy dishonest and harmful. Trump’s Education Boss was vocal in her criticism.
The Pause on Loan Payments Began During COVID-19
Loan payments were first paused in 2020 during the Trump administration. It was part of the COVID-19 relief efforts. But Biden extended that pause many times. McMahon said this made the problem worse. She said the longer people avoid paying, the harder it becomes for them to catch up. She also said it made the loan system unstable. Trump’s Education Boss noted the increasing challenges.
New Plan Will Follow Court Rulings and Restart Payments
McMahon announced a new plan to move 1.8 million borrowers into active repayment. Starting May 5, the government will restart collections. Borrowers who don’t pay on time could face serious consequences. Their credit scores may drop. Their wages could be garnished. McMahon said this isn’t to punish borrowers. Instead, she said it’s about being fair. Debt doesn’t disappear. If students don’t repay their loans, taxpayers cover the cost. Trump’s Education Boss emphasized the need for fairness in her plan.
Student Loans Are Not Like Car or Home Loans
McMahon explained that student loans are different from other types of debt. They’re backed by taxpayers. They can’t be forgiven easily. And they come with a promise: invest in education to build a better future. She said when that system fails, the cost spreads to everyone. She wants colleges to stop creating this burden as they are putting families at risk and hurting the American dream.
Biden’s Forgiveness Plans Faced Legal Roadblocks
In 2023, federal courts blocked several of Biden’s efforts to cancel large amounts of student debt. McMahon said this showed that the plan lacked legal standing. She believes the government must follow the law and respect court decisions. Her department will no longer offer zero-interest and no-accountability pauses. She said this policy encouraged more people to fall behind on payments. Trump’s Education Boss upheld the importance of legal compliance.
Student Debt Is Now a National Financial Crisis
Student debt in the U.S. has now reached over $1.6 trillion. More than 42 million Americans owe money on their loans. The Education Department warned that this debt is pushing the country toward a fiscal cliff. Many borrowers haven’t made a payment in years. McMahon said ignoring this problem won’t make it go away. She believes that restarting collections is a step toward solving the crisis.
