A top official for the country’s federal student-loan program has resigned and is endorsing canceling most of the country’s outstanding student debt.
Calling the system “fundamentally broken,” A. Wayne Johnson – appointed in 2017 by Education Secretary Betsy DeVos, says that repayment trends suggest most student loan debt will never be repaid, according to the Wall Street Journal.
His solution? Forgive up to $50,000 for anyone with federal student-loan debt, which would amount to a bailout of approximately $925 billion. The plan would wipe out the debt of nearly 37 million borrowers. He would also advocate for a tax credit for up to $50,000 for people who have already repaid their debt.
Sen Mitch McConnell hospitalized, ‘receiving excellent care,’ his office says
Republican leaders embrace viral World Cup fans they say are discovering the ‘real America’
Another One: German Woman Beheaded, Homeless African Male Arrested for Murder Earlier in 2026
Is AI Making Your Kids Dumber? Over Half of Teachers Surveyed Say It May Be
Spy Agencies Have Exploded in Size – Trump’s Intel Chiefs Are the First to Downsize
Evil Among Us: Black Magic Suspected After Cameras Capture Goat Being Dragged Into Office Building, Then More Chilling Pics Found Online
From Wasserman Schultz to Goldman, Democratic incumbents are fighting for survival
These 11 upcoming Supreme Court decisions could make or break Trump’s second term agenda
Secret evidence filed in Anna Kepner Carnival cruise murder case as feds push to jail accused stepbrother
Chinese Spies May Be Stalking You on Your Job Hunt
VIDEO: DWI Suspect Fleeing Cops Is Stopped Dead in His Tracks by Alligator… and It Attacked
Alleged Malibu serial squatter featured in new docuseries after years of homeowner complaints
Promises kept: Howard Lutnick on the anniversary of the deal that saved U.S. Steel
Taiwan opposition leader praises ‘gentle’ Xi Jinping as she insists her nation must embrace Chinese identity
‘The Office’ star blasts political ‘hypocrisy,’ explains why sitcom couldn’t be made today
Johnson, who has a doctorate in higher-education leadership and wrote his dissertation on student debt, was initially given the role of chief operating officer for the Office of Federal Student Aid, which oversees the country’s $1.5 trillion student-loan portfolio. After seven months, he transitioned to chief strategy and transformation officer, where he spearheaded a revamp of how the agency interacts with borrowers and companies that service the debt.
“We run through the process of putting this debt burden on somebody…but it rides on their credit files—it rides on their back—for decades,” he said, adding “The time has come for us to end and stop the insanity.”
Mr. Johnson said he arrived at his position to cancel student debt after he joined the administration and had a firsthand look at problems, including the high level of defaults and the difficulties of administering a program to erase loans for public-sector workers.
Mr. Johnson plans a long-shot bid for the Senate seat being vacated by Sen. Johnny Isakson (R., Ga.), who has announced he will retire Dec. 31 for health reasons. Georgia Gov. Brian Kemp, a Republican, is set to appoint an interim senator until a special election next year for the remaining two years of Mr. Isakson’s term. –Wall Street Journal
Johnson, who describes himself as a moderate Republican, has proposed a paying for the plan with a 1% tax on corporate earnings. The proposal would effectively reverse a late 2017 tax cut by the then-GOP controlled Congress.
Sen Mitch McConnell hospitalized, ‘receiving excellent care,’ his office says
Republican leaders embrace viral World Cup fans they say are discovering the ‘real America’
Another One: German Woman Beheaded, Homeless African Male Arrested for Murder Earlier in 2026
Is AI Making Your Kids Dumber? Over Half of Teachers Surveyed Say It May Be
Spy Agencies Have Exploded in Size – Trump’s Intel Chiefs Are the First to Downsize
Evil Among Us: Black Magic Suspected After Cameras Capture Goat Being Dragged Into Office Building, Then More Chilling Pics Found Online
From Wasserman Schultz to Goldman, Democratic incumbents are fighting for survival
These 11 upcoming Supreme Court decisions could make or break Trump’s second term agenda
Secret evidence filed in Anna Kepner Carnival cruise murder case as feds push to jail accused stepbrother
Chinese Spies May Be Stalking You on Your Job Hunt
VIDEO: DWI Suspect Fleeing Cops Is Stopped Dead in His Tracks by Alligator… and It Attacked
Alleged Malibu serial squatter featured in new docuseries after years of homeowner complaints
Promises kept: Howard Lutnick on the anniversary of the deal that saved U.S. Steel
Taiwan opposition leader praises ‘gentle’ Xi Jinping as she insists her nation must embrace Chinese identity
‘The Office’ star blasts political ‘hypocrisy,’ explains why sitcom couldn’t be made today
Approximately 20% of all student debt, federal and private (not including debt from those still in school), is at least 90 days delinquent according to the report, citing New York Federal Reserve data.
Meanwhile, a September Wall Street Journal/NBC News poll reveals that 41% of Americans support “immediately canceling and forgiving all current student-loan debt.” Just 16% of Republicans agreed,while 36% of independents and 63% of Democrats said the same.
The poll showed that 64% of Americans support income-based repayment plans, which forgive some student debt only after borrowers have spent a number of years paying it down. The Obama administration promoted and President Trump has endorsed income-based repayment.
Mr. Johnson’s proposal would forgive more debt than the plan proposed by Democratic presidential contender Elizabeth Warren (D., Mass.), which calls for forgiving up to $50,000 in student debt for individual families, and scaling back the benefits for those earning above $100,000. Mr. Johnson said he would set no income cap for those receiving benefits. Presidential candidate Sen. Bernie Sanders (I., Vt.) has called for canceling all federal student debt. –Wall Street Journal
The 67-year-old Johnson has spent most of his career in financial services, and headed companies that refinanced private student loans earlier in the decade. He views his proposal as a way to get the government out of the student-loan business. As an alternative, he has proposed that students receive a $50,000 forgivable government voucher to cover four years of tuition at college or graduate school.
Story cited here.
