For the first time in five years, the Federal Department of Education says that individuals who have been deferred for student loan payments are being forced to catch up or earn wages and suspend federal income tax rebates.
As the Trump administration tries to grasp $1.7 trillion in student debt, they are considering alternatives to save money.
The Wall St. Journal reports that universities can see restrictions on federal student loans if more than 30% of recent college students defaulted in the last three years, or if 40% defaulted in the most recent years.
And these schools could include Florida universities and universities.
“Unlike the Biden administration, which promised to allow students to borrow money, the Trump administration may not play around and may be considering holding schools accountable.”
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Moore says that if the University of Florida loses federal dollars, it will hurt.
“The latest threat to Trump administration colleges and universities: they may have former students pay off their loans, or future students may not get anything,” the Journal said.
The Education Department has already sent notifications to around 200,000 people who are late in paying.
Republicans seeking new laws to address the loan crisis have also complained about the fees they charge colleges and students.
“What’s not talked about about this issue was the co-conspirators of the crisis, the universities themselves. They tripled their tuition fees beyond inflation over the past 35 years, because universities are hiring tuition fees because the money spent on grant programs and student loan programs is increasing.”
