Trump Admin To Garnish Wages For Student Loan Repayments

Say goodbye to the pause put in place by the Biden administration on student debt collection.

Student Loan Update: Trump Gives New Deadline for Garnishing Wages:

The Department of Education (DOE) announced Monday that it will resume collection efforts on defaulted federal student loans starting in May, ending a four-year pause initiated during the COVID-19 pandemic.

There are more than 40 million Americans with student loan debt, 5.3 million of whom are at risk of defaulting on their loans if the Biden-era payment pauses are halted, according to the Associated Press. Another four million are between 91 and 180 days late on their loan payments.

The move by President Donald Trump's administration follows the expiration of payment pauses and grace periods that began in 2020 under the Biden administration and lasted through late 2024.

Beginning May 5, the DOE will restart involuntary collections through the Treasury Department's offset program, which can withhold tax refunds, federal salaries, and benefits from borrowers with overdue loans.

After a 30-day warning, wage garnishment will also resume for those who are in default, potentially affecting millions of Americans.

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