Business
Student Loan Collections Have Resumed: Here’s What You Need to Know
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.

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.
Activism
Oakland Post: Week of June 18 – 24, 2025
The printed Weekly Edition of the Oakland Post: Week of June 18 – 24, 2025

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Activism
OPINION: California’s Legislature Has the Wrong Prescription for the Affordability Crisis — Gov. Newsom’s Plan Hits the Mark
Last month, Gov. Newsom included measures in his budget that would encourage greater transparency, accountability, and affordability across the prescription drug supply chain. His plan would deliver real relief to struggling Californians. It would also help expose the hidden markups and practices by big drug companies that push the prices of prescription drugs higher and higher. The legislature should follow the Governor’s lead and embrace sensible, fair regulations that will not raise the cost of medications.

By Rev. Dr. Lawrence E. VanHook
As a pastor and East Bay resident, I see firsthand how my community struggles with the rising cost of everyday living. A fellow pastor in Oakland recently told me he cuts his pills in half to make them last longer because of the crushing costs of drugs.
Meanwhile, community members are contending with skyrocketing grocery prices and a lack of affordable healthcare options, while businesses are being forced to close their doors.
Our community is hurting. Things have to change.
The most pressing issue that demands our leaders’ attention is rising healthcare costs, and particularly the rising cost of medications. Annual prescription drug costs in California have spiked by nearly 50% since 2018, from $9.1 billion to $13.6 billion.
Last month, Gov. Newsom included measures in his budget that would encourage greater transparency, accountability, and affordability across the prescription drug supply chain. His plan would deliver real relief to struggling Californians. It would also help expose the hidden markups and practices by big drug companies that push the prices of prescription drugs higher and higher. The legislature should follow the Governor’s lead and embrace sensible, fair regulations that will not raise the cost of medications.
Some lawmakers, however, have advanced legislation that would drive up healthcare costs and set communities like mine back further.
I’m particularly concerned with Senate Bill (SB) 41, sponsored by Sen. Scott Wiener (D-San Francisco), a carbon copy of a 2024 bill that I strongly opposed and Gov. Newsom rightly vetoed. This bill would impose significant healthcare costs on patients, small businesses, and working families, while allowing big drug companies to increase their profits.
SB 41 would impose a new $10.05 pharmacy fee for every prescription filled in California. This new fee, which would apply to millions of Californians, is roughly five times higher than the current average of $2.
For example, a Bay Area family with five monthly prescriptions would be forced to shoulder about $500 more in annual health costs. If a small business covers 25 employees, each with four prescription fills per month (the national average), that would add nearly $10,000 per year in health care costs.
This bill would also restrict how health plan sponsors — like employers, unions, state plans, Medicare, and Medicaid — partner with pharmacy benefit managers (PBMs) to negotiate against big drug companies and deliver the lowest possible costs for employees and members. By mandating a flat fee for pharmacy benefit services, this misguided legislation would undercut your health plan’s ability to drive down costs while handing more profits to pharmaceutical manufacturers.
This bill would also endanger patients by eliminating safety requirements for pharmacies that dispense complex and costly specialty medications. Additionally, it would restrict home delivery for prescriptions, a convenient and affordable service that many families rely on.
Instead of repeating the same tired plan laid out in the big pharma-backed playbook, lawmakers should embrace Newsom’s transparency-first approach and prioritize our communities.
Let’s urge our state legislators to reject policies like SB 41 that would make a difficult situation even worse for communities like ours.
About the Author
Rev. Dr. VanHook is the founder and pastor of The Community Church in Oakland and the founder of The Charis House, a re-entry facility for men recovering from alcohol and drug abuse.
Antonio Ray Harvey
Air Quality Board Rejects Two Rules Written to Ban Gas Water Heaters and Furnaces
The proposal would have affected 17 million residents in Southern California, requiring businesses, homeowners, and renters to convert to electric units. “We’ve gone through six months, and we’ve made a decision today,” said SCAQMD board member Carlos Rodriguez. “It’s time to move forward with what’s next on our policy agenda.”

By Antonio Ray Harvey
California Black Media
Two proposed rules to eliminate the usage of gas water heaters and furnaces by the South Coast Air Quality Management District (SCAQMD) in Southern California were rejected by the Governing Board on June 6.
Energy policy analysts say the board’s decision has broader implications for the state.
With a 7-5 vote, the board decided not to amend Rules 1111 and 1121 at the meeting held in Diamond Bar in L.A. County.
The proposal would have affected 17 million residents in Southern California, requiring businesses, homeowners, and renters to convert to electric units.
“We’ve gone through six months, and we’ve made a decision today,” said SCAQMD board member Carlos Rodriguez. “It’s time to move forward with what’s next on our policy agenda.”
The AQMD governing board is a 13-member body responsible for setting air quality policies and regulations within the South Coast Air Basin, which covers areas in four counties: Riverside County, Orange County, San Bernardino County and parts of Los Angeles County.
The board is made up of representatives from various elected offices within the region, along with members who are appointed by the Governor, Speaker of the Assembly, and Senate Rules Committee.
Holly J. Mitchell, who serves as a County Supervisor for the Second District of Los Angeles County, is a SCAQMD board member. She supported the amendments, but respected the board’s final decision, stating it was a “compromise.”
“In my policymaking experience, if you can come up with amended language that everyone finds some fault with, you’ve probably threaded the needle as best as you can,” Mitchell said before the vote. “What I am not okay with is serving on AQMD is making no decision. Why be here? We have a responsibility to do all that we can to get us on a path to cleaner air.”
The rules proposed by AQMD, Rule 1111 and Rule 1121, aim to reduce nitrogen oxide (NOx) emissions from natural gas-fired furnaces and water heaters.
Rule 1111 and Rule 1121 were designed to control air pollution, particularly emissions of nitrogen oxides (NOx).
Two days before the Governing Board’s vote, gubernatorial candidate Antonio Villaraigosa asked SCAQMD to reject the two rules.
Villaraigosa expressed his concerns during a Zoom call with the Cost of Living Council, a Southern California organization that also opposes the rules. Villaraigosa said the regulations are difficult to understand.
“Let me be clear, I’ve been a big supporter of AQMD over the decades. I have been a believer and a fighter on the issue of climate change my entire life,” Villaraigosa said. “But there is no question that what is going on now just doesn’t make sense. We are engaging in regulations that are put on the backs of working families, small businesses, and the middle class, and we don’t have the grid for all this.”
Rules 1111 and 1121 would also establish manufacturer requirements for the sale of space and water heating units that meet low-NOx and zero-NOx emission standards that change over time, according to SCAQMD.
The requirements also include a mitigation fee for NOx-emitting units, with an option to pay a higher mitigation fee if manufacturers sell more low-NOx water heating and space units.
Proponents of the proposed rules say the fees are designed to incentivize actions that reduce emissions.
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