by: Christian Herald
In May, millions of Americans will face significant changes to their student loan obligations, as the U.S. Department of Education reinstates aggressive collection efforts and opens applications for income-driven repayment (IDR) plans. These policies arrive as an estimated 10 million borrowers are at risk of default—an alarming statistic that underscores a growing national financial crisis.
For the Christian community, this moment presents both a challenge and a call to action. It is a reminder that financial stewardship, grace, and truth must walk hand-in-hand.
The Coming Changes
Beginning May 5, borrowers in default may see their wages garnished or tax refunds seized under the Treasury Offset Program. These measures were paused in 2020 due to the pandemic but will now resume with renewed vigor.
However, there is also hope: starting May 10, borrowers can apply for income-driven repayment plans that calculate payments based on income rather than debt size. For many families, this means a path to lower monthly payments and, ultimately, loan forgiveness after years of faithful repayment.
Why It Matters
More than 40 million Americans carry student loan debt. Of those, 5 million are already in default, and another 4 million are over 90 days late. Without intervention, this crisis will burden not just individual households, but entire communities—especially those already struggling post-pandemic.
“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” stated Education Secretary Linda McMahon, highlighting the administration’s emphasis on fiscal discipline.
But as believers, we must ask: how do we balance fiscal accountability with compassion and hope?
A Biblical Perspective on Debt
Scripture does not shy away from the topic of debt. Proverbs 22:7 tells us, “The borrower is slave to the lender,” reminding us of the weight financial obligations can carry. Yet we also see in passages like Matthew 18:21-35 that God values mercy, especially toward those struggling under the burden of debt.
As a body, the Church is called to encourage wise financial practices, but also to advocate for justice and restoration. This includes supporting policies that offer a genuine second chance—like loan rehabilitation and IDR programs—and walking alongside those who need guidance, mentorship, and spiritual support.
How the Church Can Help
- Educate: Host workshops on debt management, student loans, and IDR plans in your congregation. Knowledge is power.
- Encourage: Remind borrowers they are not alone. Connect them with trusted resources like StudentAid.gov.
- Equip: Consider launching a financial ministry that can assist members navigating debt or default.
- Empathize: Pray with and for those burdened by debt, offering spiritual encouragement as they take practical steps.
Moving Forward
As Secretary McMahon emphasized, “There will not be any mass loan forgiveness.” This reality may seem harsh, but it also affirms the biblical principle of responsibility. Now is the time for action—both by borrowers and by the Church.
Let us be a light in this season, offering truth tempered with grace, and hope to those facing uncertainty. In doing so, we model the heart of Christ, who brings restoration to every corner of our lives—even our finances.