In an interview with Fox News' Dana Perino, the Trump administration's Education Secretary, Linda McMahon, presented some eye-opening information on student loan debt - and noted that no collections have been made since the COVID panic began in March of 2020.
.@EDSecMcMahon: "We have almost $1.7 trillion in student debt, and none of the collections have been made since March of 2020. So, it's time to have people be accountable again for their debts... we'd like to help them get out of default, but at the same time, this is something… pic.twitter.com/gDRABQVVOL
— Rapid Response 47 (@RapidResponse47) April 23, 2025
The Secretary said:
We have, gosh, almost 1.7 trillion dollars in student debt. And none of the collections have been made since March of 2020. So, it's time to have people be accountable again for their debts. But it's... We're not trying to make it difficult for anyone. So, there are many options, that those who have outstanding loans can go to. They should go to studentaid.gov to find out. We have longer hours, for them to call to find out if they have other options. We have, actually, an AI, Aiden, that can answer questions for them, so we're trying to put lots of plans in place so that people who do have loans outstanding can bring themselves up to date. We have over five million people that are in default. And that means that their credit scores are affected, if they want to buy a home or buy a car. It's very difficult for them, so we'd like to help them get out of default, and at the same time, this is something they owe. This is money they borrowed to go to school, and other taxpayers shouldn't have to pay this burden. I think that's very clear.
And there's the rub: This administration differs so dramatically from the former, in that they agree with the staggeringly obvious statement that other taxpayers shouldn't have to pay the burden for these students. We didn't sign loan agreements; these students did. We aren't liable for these debts; these students are. The administration is showing great generosity in working with these young skulls full of mush on payment plans and so on, but in the end, it is the responsibility of those who borrowed this money to pay it back.
See Also: Last Vestiges of Biden Agenda Canceled, As Court Rules Student Loan Forgiveness 'Exceeded Authority'
Again, this is an argument for a major reform in how we finance education in the United States. Borrowing for an education isn't like borrowing for a house or a car; in those cases, if the borrower defaults, the bank can send someone out to repossess the car or foreclose on the house. What do you repossess when a student loan is in default?
That means that the risk determination has to be made up front. This program must be privatized; let prospective students make their proposals to a banker, presenting their academic careers to date to the lender along with their college plans and post-college employment prospects. The only involvement the schools should have is to be a required co-signer on every student loan - if the kid defaults, the college is on the hook.
Want education reform? That's how you get education reform. But under no circumstances should outstanding loans be en masse "forgiven" or "canceled."
Student loan forgiveness is a stake in the heart of contract law in the United States. These people signed loan agreements – contracts – that included terms for repayment. Now, because of loud shouting by the “aggrieved” class of spoiled children who suddenly found out their degrees are worthless, and because of shameless pandering by Democrats, these kids are shouting to have their contracts tossed on the backs of taxpayers.
It's gratifying to see that the Trump administration is having none of it.
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