Linda McMahon has voiced concerns regarding the management of student loans, highlighting the shift from private sector control to the Department of Education under President Obama.
"The people in the Department of Education were really involved with student loans. And you know, student loans used to be in the private sector. It was President Obama who brought them in and placed them under the Department of Education. Which is not a bank," McMahon stated. She emphasized that the collection process is outsourced to third-party providers, raising questions about efficiency and effectiveness.
According to The Daily Caller, McMahon has engaged in discussions with Secretary Besson, President Trump, and Scott Besson, exploring potential improvements to the current system. She noted, "the Treasury does it very well," suggesting it could be a more suitable entity for managing new loans.
The possibility of involving the Small Business Administration (SBA) in a guaranteed loan program was also mentioned, though McMahon acknowledged this as a topic for future deliberation. Her primary concern remains ensuring the collection process functions properly, especially given the halt in collections since March 2020 due to the pandemic.
McMahon criticized the Biden administration's approach to student loan forgiveness, arguing it is unfair to taxpayers who have either paid their own loans or expect their tax dollars to be allocated elsewhere. She pointed out the administration's attempts to circumvent the Supreme Court's rulings on loan forgiveness.
McMahon did, however, recognize the legitimacy of loan forgiveness for public service workers, such as teachers and first responders, who fulfill service agreements approved by Congress. "We're talking about 10 years and consistent payments for that," she noted, underscoring the importance of adhering to established guidelines for loan forgiveness.
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