Washington, D.C. – April 22, 2025
White House Press Secretary Karoline Leavitt has issued a stark warning to over *5 million student loan defaulters, emphasizing that President Joe Biden’s *student loan forgiveness program is set to end in just a few days. Speaking at a press briefing, Leavitt highlighted the urgency for borrowers to prepare for the resumption of involuntary collections by the Department of Education starting May 5.
End of Loan Forgiveness Program
Leavitt described Biden’s program as an *”illegal student loan bailout”, citing the *Supreme Court’s 2023 ruling that deemed the initiative unconstitutional due to its lack of congressional approval. She stressed that borrowers who have defaulted on their federal student loans will soon face *collections, including withholding of **tax refunds, **federal pensions, and even *wages.
The Scale of Student Loan Debt
The United States currently has over *42.7 million student loan borrowers, collectively owing *$1.6 trillion in debt. Of these, more than 5 million borrowers have not made a payment in the past year, with an additional 4 million approaching default status. Leavitt underscored the importance of fiscal responsibility, stating, “Debt cannot be wiped away; it just ends up getting transferred to others. Why should Americans who responsibly paid back their loans bear the burden of others’ debts?”
Impact on Borrowers
Borrowers in default will receive communication from Federal Student Aid in the coming weeks, outlining their options for repayment. A loan becomes delinquent when a payment is missed for *90 days, and it enters default status after *270 days of non-payment. The resumption of collections marks the end of a pause initiated during the COVID-19 pandemic under former President Donald Trump.
Fiscal Responsibility and National Debt
Leavitt emphasized the need to address the nation’s *$36 trillion debt, calling for a return to *common-sense fiscal policies. She stated, “America must get its fiscal house in order, and restoring accountability in student loan repayments is a step in the right direction.”