Trump's Education Dept. signals focus on paying back student debt

"President Donald Trump's administration doesn't want you to ask for forgiveness - it wants you to ask for loan repayment options. On Friday, the Department of Education announced it is expanding its ombudsman's office, which typically handled student-loan borrower complaints, to also focus on consumer education and ensure that borrowers "are better equipped to make careful borrowing decisions and responsibly manage their federal student loan debt," the press release said."

"This comes after Federal Student Aid moved its button to submit a complaint on its website to the bottom of the page under a "site feedback" button, which some lawmakers have said is difficult to navigate and deters borrowers from reporting issues. "Unlike the previous Administration's focus on loan forgiveness, the Trump Administration is taking action to implement meaningful and necessary enhancements to the way student loans are serviced to better serve borrowers and American taxpayers,""

"The department is also soliciting feedback on the creation of a new "common manual" intended to serve as a centralized place for servicing and debt collection practices. The press release said it would allow for consistent borrower communications and customer service, while allowing the department to take enforcement actions over servicers. While Trump opposed Biden's debt relief efforts before taking office, this latest step marks his administration's increased focus on ensuring borrowers pay back their loans rather than relying on loan forgiveness programs."

The Department of Education is expanding its ombudsman's office to focus on consumer education and borrower assistance in managing federal student loan debt. Federal Student Aid moved its complaint submission button to the bottom of the website under a "site feedback" button, a placement that some lawmakers say is difficult to navigate and deters borrowers from reporting issues. The department is soliciting feedback to create a "common manual" serving as a centralized reference for servicing and debt collection practices to produce consistent borrower communications and customer service. The manual would enable the department to take enforcement actions over servicers. Officials framed the shift as prioritizing repayment and servicing improvements over broad loan forgiveness.

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