By Edward Henderson, California Black Media

The U.S. Department of Education (DOE) announced that its Office of Federal Student Aid (FSA) resumed collection of its defaulted federal student loan portfolio on May 5.

The department has not collected on defaulted loans since March 2020.

‘Collections on defaulted federal student loans are resuming. This means that your tax refund or other federal benefits may be withheld,” reads an email affected borrowers in California and around the country received from the DOE last week.

“Later this summer, your employer may also be required to withhold a portion of your pay until you begin to repay your defaulted federal student loan,” the email continues.

According to the DOE, 42.7 million borrowers owe more than $1.6 trillion in student debt. More than 5 million borrowers have not made a monthly payment in over 360 days and their loans have been declared “in default.” Another 4 million borrowers are in late-stage delinquency (91-180 days). As a result, there could be almost 10 million borrowers in default in a few months. If this happens, almost 25% of the federal student loan portfolio will be in default.

“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” said U.S. Secretary of Education Linda McMahon in a release.

The DOE is urging borrowers in default to contact the Default Resolution Group to make a monthly payment, enroll in an income-driven repayment plan, or sign up for loan rehabilitation. Later this summer, FSA will send required notices to begin administrative wage garnishment.

Student loan debt statistics among racial and ethnic groups reflect dramatic differences in financial health, habits, and resource availability from one community to the next, according to the Education Data Initiative.

Black and African American college graduates owe an average of $25,000 more in student loan debt than White college graduates (Black and African American bachelor’s degree holders have an average of $52,726 in student loan debt).

“The level of concern here really depends on the reasons a borrower has not paid their federal student loans. If they don’t have the capacity, they may be overstretched,” Michele Raneri, vice president and head of research at TransUnion, said in a statement. “They may not know they have to pay them, may not be able to find the information on how to do so, or may not have a willingness to pay for one reason or another,” she said.

Top tips to manage any pending student loan payments include reviewing your student loan balance on your Dashboard.

Affected borrowers can visit their loan servicer’s website for assistance if needed. Setting up auto pay to ensure on-time payments is recommended. Individuals are also encouraged to review many loan forgiveness options and qualifications.

Most programs have strict eligibility requirements, but student loans can be forgiven under programs such as the following:

• Public Service Loan Forgiveness for people who work for eligible government and nonprofit employers
• Teacher Loan Forgiveness for people who work in eligible teaching jobs
• Income-driven repayment (IDR) forgiveness for people who repay their loans on an eligible IDR plan
• Total and permanent disability discharge for people with a disability that severely limits their ability to work

Learn about other loan forgiveness programs at Studentaid.gov.

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By Antonio‌ ‌Ray‌ ‌Harvey‌, ‌California‌ ‌Black‌ ‌Media‌

On May 6, employees from industries across the private and public sectors — including utility, domestic, janitorial, healthcare, oil and gas, and farm workers — joined educators and others in Sacramento to push lawmakers to strengthen the state’s health and safety enforcement systems.

The rally at the State Capitol was organized by a statewide coalition of 15 worker unions called California Labor for Climate Jobs (CLCJ).

Organizers say their campaign to pressure legislators and state officials to not abandon their responsibility to protect workers is urgent as climate hazards rise and federal government efforts to pull back on oversight and enforcement increase.

“Approximately 19 million workers in the state are here together to have a say in what happens next,” said Norman Rogers, vice president of United Steelworkers Local 675. “In seven of the last eight years, California has recorded record-high temperatures while workers from our state’s fields to our commercial kitchens, from our warehouses to our schools continue to work in dangerously high-heat conditions.”

Cal/OSHA provides protection and improves the health and safety of working men and women in the state. The agency also enforces public safety measures to protect passengers riding on elevators, amusement rides, tramways, and more.

According to a 2023 report by the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), workplace hazards are responsible for killing approximately 140,000 workers each year, including 5,283 from traumatic injuries.

Hazardous working conditions have caused an estimated 135,000 deaths from occupational diseases. That’s about 385 workers dying each day, according to the report.

Assemblymember Tina McKinnor (D-Inglewood) spoke at the rally to discuss legislation she authored, Assembly Bill (AB) 694, which proposes a pathway to jobs for Cal/OSHA to ensure stronger public safety enforcement.

According to CLCJ, Cal/OSHA is experiencing an understaffing crisis that is evident in the agency’s 43% vacancy rate.

McKinnor, a member of the California Legislative Black Caucus (CLBC), said the bill aims to fully staff the state agency with enforcement agents who have expertise in working in California’s most dangerous work environments.

The Assembly Committee on Higher Education voted 9-0 to advance AB 694 on April 29. It is now headed to the Committee on Appropriations for consideration.

“Extreme heat is on the rise, with year-over-year, record-breaking temperatures that threaten the health and safety of California workers, from warehouse workers who lack adequate cooling, to janitors cleaning buildings after the air conditioning has been turned off, to line chefs cooking in unventilated kitchens,” McKinnor said at the rally.

McKinnor continued, “We must urgently shore up our health and safety systems, so we can enforce California heat standards and safeguard worker health.”

CLCJ released the California Worker Climate Bill of Rights last fall, urging state legislators to propose policy solutions to protect workers from climate hazards such as extreme heat, fires, smoke, and floods.

Norman Rogers, Second Vice President of United Steelworkers Local 675 in Carson, said oil refinery operations around the state pose “the most hazards.

“AB 694 seeks to recreate Cal/OSHA to hire union oil and gas workers leveraging the knowledge, health and safety training, and process safety training used daily to ensure safe, compliant refinery operations,” Rogers added.

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