By John Q. Hosedrinker 
In a recent announcement, the Trump administration revealed plans to begin wage garnishment for student loan borrowers in default. Starting the week of January 7th, the Department of Education will notify approximately 1,000 defaulted borrowers, with the number of notifications expected to grow. The government has the authority to seize up to 15% of a borrower’s after-tax income, ensuring borrowers retain at least $217.50 weekly, as per legal requirements.
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The Trump administration’s decision to begin seizing the pay of defaulted student loan borrowers in January is a move that’s stirring up a lot of emotions, and for good reason. It’s easy to see why this policy shift, ending a period of leniency, feels like a real blow for many. The idea of having a chunk of your hard-earned wages automatically garnished to pay down student debt, especially if you’re already struggling, is certainly daunting.
The irony isn’t lost on anyone that this is happening, as the administration’s leader is known for, shall we say, a complicated relationship with debt. While those who are educated, and often starting from scratch, are facing wage garnishments, the article highlights the fact that there are bailouts for other industries. There is a strong feeling that the deck is stacked against those trying to better themselves.
This policy has some people deeply worried. Imagine finding your income suddenly reduced, and then having to try and manage basic expenses like rent and groceries. That’s a pretty scary prospect, and it’s easy to see why this is causing anxiety. The whole thing feels… well, let’s just say it feels like a very “anti-American” move by some.
The fact that the government is able to send money to places like Argentina, which have free education, but can’t help struggling, educated Americans feels like a real slap in the face. Many people feel like there’s an inherent unfairness in the system, and that this new policy is only going to exacerbate those feelings.
The fact that this move comes after a pause during the pandemic, and that the “on-ramp” to repayment has become a metaphorical cliff, only makes it worse. Many feel that the system has failed, and that the only option left is financial ruin.
It is disheartening to see the focus on those struggling with debt, while others appear to escape accountability. The contrast between seizing wages from those trying to make a living, versus the ways some people use the system to their advantage, is pretty stark.
The economic implications are also a worry. Taking money out of the pockets of people who are already struggling could have a negative impact on the economy as a whole. It’s hard to see how this could be anything but damaging for those already in debt.
Some feel this move is part of a larger pattern of actions that seem designed to hurt the average American. Cutting funding to the arts and sciences, attacks on electric vehicle sales, and a general disregard for the well-being of those struggling to get by are mentioned as examples of this.
The sentiment that this is a “golden age” for some while leaving the poor to suffer feels spot on. It really does create the sense that this is a way for the rich to benefit.
It’s easy to understand why many feel betrayed, lied to, and exploited by the education system. Encouraging young people to go into debt for an education, under the guise of opportunity, and then penalizing them for struggling to pay it back, feels like a real betrayal.
The issue of student loan debt and bankruptcy is also a key point. The fact that student loans can’t be easily discharged in bankruptcy, unlike other forms of debt, makes the situation even more precarious for borrowers.
The question of priorities is raised: Why the focus on seizing wages from borrowers, while the US sends money abroad, and provides assistance to other industries? It’s hard not to conclude that the priorities are misaligned.
The frustration is palpable, and it’s understandable. People feel helpless and betrayed by the system that is supposed to help them.