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.

  • jacksilver@lemmy.world
    5·
    1 day ago

    5.3 is the number in default, there are a lot more with student debt in general (online resources say around 42 million).

    I also think the article mentions there are millions more at risk of being in debt, but that’s a whole other can of worms cause (as is the case with Trump and Republicans) communication about loan repayment is unclear.