The Education Department will begin collection next month on student loans that are in default, including the garnishing of wages for potentially millions of borrowers, officials said Monday.

Currently, roughly 5.3 million borrowers are in default on their federal student loans.

The Trump administration ’s announcement marks an end to a period of leniency that began during the COVID-19 pandemic. No federal student loans have been referred for collection since March 2020, including those in default. Under President Joe Biden, the Education Department tried multiple times to forgive millions of people’s student loans, only to be stopped by courts.

“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” Education Secretary Linda McMahon said.

  • ExtantHuman@lemm.ee
    9·
    2 days ago

    The feds are going to be intercepting tax refunds and garnishing wages. Collections isn’t voluntary. This is going to crash the economy

    • thedruid@lemmy.world
      35·
      2 days ago

      thats why cash is better than digital currency. everyone willingly gave everything to them.

      • ExtantHuman@lemm.ee
        31·
        1 day ago

        Do you really think your employer would have not sent the cash when they got that certified letter of garnishment just because they were handling cash instead of direct deposit?

        This shit is not new