For the first time in five years, the federal Department of Education is stating that individuals overdue on student loan payments will be forced to catch up or see their wages garnished and their federal income-tax refunds halted.
As the Trump administration tries to grasp over the $1.7 trillion in student debt, they are looking at alternatives on saving money.
The Wall St. Journal reports that universities could see restrictions on federal student loans if more than 30% of recent college students have defaulted over the past three years, or if 40% have defaulted in the most recent year.
And these schools could include Florida colleges and universities.
“Unlike the Biden administration that promised to forgive student debt, the Trump administration isn’t playing around, and they may be looking at holding schools responsible,” said Ed Moore, former President of the Independent Colleges and Universities of Florida.
Moore says Florida Universities would be hurt if they lost federal dollars, which could lead to potential students going somewhere else.
“The Trump administration’s latest threat to colleges and universities: Get your former students to pay back their loans or future students might not get any,” said the Journal.
The Dept of Education has already been sending out notices to around 200,000 who are behind on payments.
Republicans pushing for new legislation to address the loan crisis have also complained about universities and the fees they charge students.
“On this issue, what isn’t being talked about are the conspirators in this crisis, which have been the universities themselves. They have tripled their tuition rates above inflation over the last 35 years, as the more money we put into the grants program and the student loan programs, all the universities do to respond is hike their tuition,” said former Trump economist Steve Moore.
