The Trump administration’s “One Big Beautiful Bill Act” limited student loan borrowing for graduate and professional degrees, excluding nursing from the list of programs eligible for higher debt limits. This decision, which set a $100,000 borrowing cap for nursing students, sparked criticism from nursing organizations who argued it would hinder access to funding and threaten patient care. A group of Republican representatives, including Rep. Mike Lawler and Jen Kiggans, are now backing legislation to include nursing in the list of professional degrees eligible for higher funding. Despite the Education Department claiming most nursing students would not be affected, nursing organizations and advocates argue the move disregards the critical need for qualified nurses and contradicts the department’s own definitions.
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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 SAVE program, designed to aid student loan borrowers, is likely ending due to a settlement between the Trump administration and several states’ attorneys general, which will force nearly eight million borrowers into new repayment plans. This will result in increased monthly payments, potentially doubling for some, and a potential “tax bomb” at the end of the loan term. This change could force people into financial hardship. This decision will likely exacerbate existing financial pressures, as many borrowers face other debts and rising costs, potentially leading to increased delinquency rates and economic disruption.
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The Trump administration is considering selling portions of the $1.6 trillion federal student loan portfolio to private investors, a move that could reshape the student loan landscape. Senior officials have reportedly been discussing the offloading of high-performing loan segments to private entities, potentially impacting approximately 45 million borrowers. This plan aligns with the administration’s goal of reducing federal involvement in student loans, which could jeopardize existing consumer protections and government cancellation powers. Experts raise concerns about the shift of repayment responsibilities to private companies, along with the potential for increased costs and reduced borrower benefits, ultimately making it harder to access college.
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The Department of Education has announced a halt to the garnishment of Social Security benefits for borrowers in default on federal student loans, a policy shift following the recent resumption of loan collections. This action affects an estimated 452,000 individuals aged 62 and older with defaulted loans. While the administration cites a commitment to protecting Social Security recipients, advocates argue that this pause is insufficient to address the broader issue of the 5.3 million borrowers in default and the significant increase in student loan debt among older Americans. The growth in student loan debt among older borrowers, now totaling an estimated $125 billion, underscores the need for more comprehensive solutions.
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The Trump administration’s resumption of student loan collections has resulted in the garnishment of Social Security benefits for over 450,000 defaulted borrowers aged 62 and older, beginning as early as June. While up to 15% of benefits may be offset, leaving a minimum of $750, borrowers can challenge garnishments by proving financial hardship or pursuing loan discharge options, such as a Total and Permanent Disability discharge. Alternative solutions include getting current on loans through income-driven repayment plans or utilizing available resources to supplement income. The 15% cap applies to all Social Security benefits, including retirement and disability payments.
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The resumption of student loan collections under the Trump administration is disproportionately impacting older Americans, many of whom face Social Security garnishment despite decades of struggling to repay loans. Hundreds of thousands of individuals aged 62 and older, holding an estimated $125 billion in defaulted loans, are at risk of having their benefits seized, leading to severe financial hardship. This renewed collection effort, while intended to improve the nation’s economic outlook, is forcing many elderly borrowers to make drastic cuts to their already limited budgets and creates a situation where federal benefits are essentially being taken away with one hand while given with another. The issue highlights the growing burden of student loan debt among older generations and the unintended consequences of policies that fail to consider their unique circumstances.
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The Trump administration has restarted the collection of defaulted federal student loans after a five-year pause, with wage garnishment potentially beginning this summer. Notices will be sent to 5.3 million borrowers, marking a significant shift from the Biden administration’s pandemic relief measures. The government’s aggressive collection tactics, including the potential garnishment of Social Security benefits, raise concerns about the financial hardship this may impose on borrowers, particularly retirees. Experts note that the shortened notice period and expedited collection timeline deviate from historical practices.
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The Department of Education will begin garnishing the wages of over 5 million Americans in student loan default starting May 5th, a move defended by Secretary McMahon as freeing taxpayers from irresponsible loan policies. This action is sparking widespread criticism on social media, with users highlighting the policy’s harsh impact during an economic crisis and contrasting it with the Trump administration’s previous forgiveness of nearly $800 billion in PPP loans. Many point to the hypocrisy of this policy, given the administration’s simultaneous tax cuts for the wealthy and loan forgiveness for politically connected businesses. The move is the latest in a series of actions by the administration to restrict student loan relief and increase the burden on borrowers.
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The Department of Education will resume collections on defaulted federal student loans starting May 5th, impacting roughly 5.3 million borrowers. This includes wage garnishment after a 30-day notice and offsets from government payments. The move ends pandemic-era leniency and has drawn criticism for potentially exacerbating financial hardship for many borrowers. While loan rehabilitation offers a path to avoid wage garnishment, the department emphasizes responsible repayment to improve both individual and national economic health.
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John Q. Hosedrinker