Student loan borrowers are learning a harsh lesson familiar to most adults: When you take out a loan and agree to pay it back, there are consequences if you don’t.
Cue the outrage.
The Department of Education announced that it will restart collecting federal student loans in default on May 5, ending a years-long pandemic-era pause, according to reports.
More than 5 million borrowers are in default, the department said in a news release. Federal student loans go into default after 270 days without payment.
“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” Education Secretary Linda McMahon said in a statement. “The Biden Administration misled borrowers: the executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear.”