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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The Richmond Standard

The West Contra Costa Unified School District (WCCUSD) announced Tuesday the reinstatement of Pinole Valley High School coaches who were placed on leave while the district investigated allegations of racist remarks made by their team during games.

The WCCUSD stated that an internal review found that both coaches followed the appropriate process when they were made aware of the allegations. However, the district said its investigation was unable to confirm exactly who made the racist remarks.

“Reports indicate that the inappropriate remarks may have come from the stands; however, the exact source has not been confirmed,” the district said in the statement.

The district said that in response to the incident, it will have a school administrator and the athletic director present at all remaining Pinole Valley High School baseball games this season. The district says it is also reinforcing behavioral expectations to student-athletes, staff, families, and spectators.

“The behavior displayed by individuals during the April 23 varsity baseball game between Pinole Valley High School and Albany High School was unacceptable and does not reflect the values of our district, our schools, or our athletic programs,” the district stated.

In cellphone video captured by an Albany High parent at the April 23 game, one or more people can be heard shouting comments including “P.F. Chang is that you” and “Baljeet” to separate Albany pitchers of Asian descent.

According to news reports, the Pinole Valley baseball coach apologized to the Albany team days after the game.  Pinole Valley High also faced allegations of inappropriate remarks made at the April 16 game against El Cerrito High.

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By Ken Epstein

After 20 years under state control, the Oakland Unified School District (OUSD) will regain local authority over its budget and day-to-day decision-making, emerging from an era of austerity when the district was forced by state-appointed overseers to close more than 40 mostly flatland schools, eliminate educational programs, and cut millions of dollars in services for students and classrooms.

After making its final payment on a $100 million state loan at the end of June, the district in July will again be under the authority of the local school board, like other districts statewide.

The decades of direct intervention by state officials, Alameda County education officials and a powerful, state-funded regulatory agency, the Fiscal Crisis Management and Assistance Team (FCMAT), will finally come to an end in July, according to the office of State Superintendent of Schools Tony Thurmond.

The official narrative of the state takeover is a simple one: the district overspent its budget, and the state altruistically stepped in to rescue it.

But the truth behind the takeover is far different. It’s a story of raw power, greed, and racism.

When the state declared the district insolvent in 2003, OUSD had a $39 million deficit, and funds in a reserve account sufficient to loan itself funds to cover the deficit, a practice that was common in other districts. However, the state would not allow Oakland to use its own money to cover the shortfall.

The state stepped in, fired Supt. Dennis Chaconas, eliminated the authority of the Board of Education, forced the district to take a $100 million loan that it neither needed nor requested, and appointed a receiver, Randolph Ward, who reported to the state schools’ superintendent, making all the decisions related to the operation of OUSD, including how to spend the $100 million loan.

Not only did the district have to repay the loan, it had to pay the salaries of the various overseers it was required to hire.

Involved in the drive to take control of the district and sell school properties was Oakland’s then powerful State Senator Don Perata, who had been pushing for several years to take control of the district, unsuccessfully attempting to sell the district’s Second Avenue headquarters to real estate developers.

Other local business and political leaders, including State Supt. of Schools Bill Honig, were determined to eliminate the power of the Black majority school board, which was seen as an impediment to the agenda for business as usual.

Among recent interventions by Oakland’s outside overseers was in 2021, when the district, with broad community support, was about to adopt a resolution for “Reparations for Black Students.” The outside trustee spoke at a school board meeting to block the passage of the measure until the board removed wording that would have protected predominantly Black schools from being closed.

In 2024, during district negotiations with administrators, the trustee did not allow the board to approve more money unless it agreed to guidelines to close and merge schools.

In a letter to the district, Alameda County Superintendent of Schools Alysse Castro agreed that the district has done what is necessary to regain local control but that challenges remain.

“These improvements co-exist with ongoing concerns that OUSD must still confront its structural deficit and address the long-standing overinvestment in small schools,” she wrote.

“However, these are challenges of local policy and the domain of a locally elected board of education, not of mismanagement or financial misconduct,” Castro wrote.

“Continuing to require a trustee to backstop them risks continued delay in local ownership and accountability and reinforces a counterproductive narrative that feeds resistance and undermines the board’s willingness to engage their community in making necessary tradeoffs.”

Going forward, the district still faces financial difficulties. According to reports, the board must make $73 million in cuts to the 2025-2026 budget and an additional $17 million from the 2026-2027 budget.

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