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.
Read More
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.
Read More
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.
Read More
John Q. Hosedrinker