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Offline mystery-ak

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Trump administration to start seizing pay of defaulted student loan borrowers in January
« on: December 23, 2025, 05:42:48 pm »
Trump administration to start seizing pay of defaulted student loan borrowers in January
Published Tue, Dec 23 202510:21 AM ESTUpdated 5 Hours Ago
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Annie Nova

    The Trump administration will start garnishing the wages of student loan borrowers in default in early January, a spokesperson for the U.S. Department of Education confirmed to CNBC on Tuesday.

    More than 5 million student loan borrowers are currently in default, and that total could swell to roughly 10 million borrowers soon, the Education Department said earlier this year.

The Trump administration will start garnishing the wages of student loan borrowers in default in early January, a spokesperson for the U.S. Department of Education confirmed to CNBC on Tuesday.

It will be the first time a portion of borrowers’ paychecks has been at risk since the beginning of the Covid pandemic, when collection activity was halted.

Starting the week of Jan. 7, the Education Department expects around 1,000 defaulted student loan borrowers to receive notices of administrative wage garnishment, the spokesperson said. After that, the number of notified borrowers will continue to increase.

The U.S. government has extraordinary collection powers on federal debts, and it can seize borrowers’ federal tax refunds, wages, and Social Security retirement and disability benefits.

The Education Department can seize up to 15% of a student loan holder’s after-tax income to put toward their debt. By law, borrowers must be left with at least 30 times the federal minimum hourly wage ($7.25) a week, which is $217.50, said higher education expert Mark Kantrowitz.

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https://www.cnbc.com/2025/12/23/student-loan-borrowers-wage-garnishment.html
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Online Hoodat

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Re: Trump administration to start seizing pay of defaulted student loan borrowers in January
« Reply #1 on: December 23, 2025, 06:00:35 pm »
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Offline berdie

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Re: Trump administration to start seizing pay of defaulted student loan borrowers in January
« Reply #2 on: December 23, 2025, 06:46:05 pm »
If they owe the money...they owe it. If they took out federal loans...that's too bad. Owing the Feds is like owing a loan shark if they choose to collect.

Back in the 70's my aunt and her ex owed fed income tax. The ex was an unemployed bum so they went after her. They garnished her wages and left her enough to buy a stick of gum and tent to live in. It was brutal for her and her two kids.

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Offline Wingnut

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Re: Trump administration to start seizing pay of defaulted student loan borrowers in January
« Reply #3 on: December 23, 2025, 06:50:41 pm »
This could be fixed if colleges took control of the loans.  If you want to goto that college, you apply for a loan at the college of your choice..  After graduation you pay the loan back to the college.   Get the Gov out of this college loan scam.
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Offline Kamaji

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Re: Trump administration to start seizing pay of defaulted student loan borrowers in January
« Reply #4 on: December 23, 2025, 06:53:54 pm »
Quote from: berdie on December 23, 2025, 06:46:05 pm
If they owe the money...they owe it. If they took out federal loans...that's too bad. Owing the Feds is like owing a loan shark if they choose to collect.

Back in the 70's my aunt and her ex owed fed income tax. The ex was an unemployed bum so they went after her. They garnished her wages and left her enough to buy a stick of gum and tent to live in. It was brutal for her and her two kids.



It’s not fun, but IRS collections have gotten significantly less brutal than they were in the 1970s. 
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Offline berdie

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Re: Trump administration to start seizing pay of defaulted student loan borrowers in January
« Reply #5 on: December 23, 2025, 07:32:58 pm »
Quote from: Wingnut on December 23, 2025, 06:50:41 pm
This could be fixed if colleges took control of the loans.  If you want to goto that college, you apply for a loan at the college of your choice..  After graduation you pay the loan back to the college.   Get the Gov out of this college loan scam.



Agreed!
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