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Education Department Is About To Seize Student Loan ...
The plan could hit 9.5 million borrowers as the administration weighs private debt collectors, wage garnishment and benefit seizures.
- The Trump administration is preparing to resume student loan collections after the midterm elections, moving forward with plans to hire private debt collectors for full implementation likely in 2027.
- Amid record-high defaults, officials are reviving a policy previously paused due to economic concerns; recent data shows 9.5 million borrowers unable to make scheduled payments on federal student loans.
- Treasury Secretary Scott Bessent received a warning last week from Protect Borrowers and Princeton University's Debt Collection Lab noting "mounting evidence" the Education Department lacks accurate data to certify debts for collection.
- Michael Pierce, executive director of Protect Borrowers, warned that resuming collections will be a "catastrophe for families across the country," leaving households with "even less money to put food on the table or make rent."
- Strategists noted it would be "politically insane" to announce collections before the midterms, suggesting the administration aims to shield the GOP from accountability while finalizing debt collector contracts in 2027.
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15 Articles
Trump team ready to fine Americans who default on their student loan payments: report
Treasury considering handing out financial penalties to borrowers already struggling to clear their debt but unlikely to announce more aggressive measures until after the midterms, according to report
·London, United Kingdom
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Student Loans on Ballot as Trump Officials Gear Up to Garnish Wages From Defaulted Borrowers After Midterms
Trump administration plans to task private debt collectors with going after student loan defaulters post-midterm elections. Record levels of defaults reported.
·Portland, United States
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Total News Sources15
Leaning Left8Leaning Right0Center3Last UpdatedBias Distribution73% Left
Bias Distribution
- 73% of the sources lean Left
73% Left
L 73%
C 27%
Factuality
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