(TSN): The White House has served notice  to student loan borrowers who applied for debt cancellation under the Biden Administration that they must pay. 

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Effective May 5, 2025, the U.S. Department of Education will resume collections on defaulted federal student loans, ending a pause that began in March 2020 due to the COVID-19 pandemic. This decision affects over 5 million borrowers currently in default and an additional 4 million who are delinquent. The Department of Education  plans to initiate wage garnishment processes by the summer for non-compliant borrowers. 

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Borrowers in default can opt for loan rehabilitation to avoid garnishment. 

Press Secretary Karoline Leavitt  said when making the announcement that if you take out a federal educational loan you must be responsible for paying it instead of burdening taxpayers and contributing to the national debt.

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The cancellation of student loans has a significant impact on Black borrowers, who are disproportionately affected by student debt in the U.S.

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​Real-Life Impact on Black Borrowers

• After 12 years of repayment, the typical Black borrower still owes 13% more than they originally borrowed.

• In contrast, white borrowers typically owe 35% less after the same period.

• HBCU Grads and Loan Disparities

• Many Black students attend Historically Black Colleges and Universities (HBCUs), which often have less funding than predominantly white institutions.

• Students at HBCUs borrow more and default more often—not because they’re irresponsible, but because of systemic underinvestment.

• Cancellation can be especially transformative for these alumni.

• Predatory For-Profit Colleges

• Many Black students were funneled into for-profit schools that promised high-paying jobs but delivered poor outcomes.

• The Biden administration has already canceled billions in debt for students defrauded by these institutions—this disproportionately helps Black borrowers.

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2. HBCU Grads and Loan Disparities

• Many Black students attend Historically Black Colleges and Universities (HBCUs), which often have less funding than predominantly white institutions.

• Students at HBCUs borrow more and default more often—not because they’re irresponsible, but because of systemic underinvestment.

• Cancellation can be especially transformative for these alumni.

3. Predatory For-Profit Colleges

• Many Black students were funneled into for-profit schools that promised high-paying jobs but delivered poor outcomes.

• The Biden administration has already canceled billions in debt for students defrauded by these institutions—this disproportionately helps Black borrowers.

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