As if the tariffs, cuts to the federal government and the crippling of 401(k)s wasn’t enough, the Trump administration is hellbent on collecting student loan payments that have been on pause since Trump’s first term.
According to NBC Chicago, the worst administration ever isn’t just looking to get folks back to paying their loans consistently. They’re going to start garnishing the wages of those in default, and that could begin as early as June.
The Education Department is reportedly alerting some 195,000 student loan borrowers that they aren’t just in default, but their federal benefits–including Social Security retirement checks–could be garnished in the next 30 days.
Because nothing says, “we are the most heartless administration ever,” like taking money from some of the most vulnerable among us. As it stands, “there are some 2.9 million people ages 62 and older with federal student loans,” NBC Chicago reports.
The Treasury Department is expected to send out notices to some 5.3 million borrowers who are currently in default to inform them they are at risk of losing wages later this summer.
From NBC Chicago:
Since the pandemic began in March 2020, collection activity on federal student loans has mostly been paused. The Biden administration focused on extending relief measures to struggling borrowers in the wake of the Covid pandemic and helping them to get current.
The Trump administration’s aggressive collection activity is a sharp turn away from that strategy, experts say.
“Borrowers should pay back the debts they take on,” said U.S. Secretary of Education Linda McMahon in a video posted on X on April 22.
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.
But in the past, student loan borrowers were usually given 65 days’ notice before the garnishment of their federal benefits, said higher education expert Mark Kantrowitz.
“Odd that they say a 30-day notice,” Kantrowitz said.
Historically, the offsets to people’s retirement and disability benefits were also “a last resort,” Kantrowitz said, “occurring a year after wage garnishment and other attempts at collection had failed.”
“Given the timing, it sounds like they are not pursuing the normal due diligence schedule for collecting defaulted federal student loans,” Kantrowitz added.
Normal due diligence? If the Trump administration doesn’t care about the Constitution or decorum or putting ketchup on steak, then they sure don’t care who they hurt with their unending violent governance.
“Losing a portion of their Social Security benefits to repay student loans could mean not having enough for food, transportation to medical appointments or other basic necessities,” Carolina Rodriguez, director of the Education Debt Consumer Assistance Program in New York, said, NBC Chicago reports.
But I’ve got one word that will help those who are struggling with missed payments to avoid having their wages taken from them: forbearance.
“We’re advising clients to request a retroactive forbearance to cover missed payments, and a temporary forbearance until they can get enrolled in an income-driven repayment plan,” Rodriguez told the news station.
SEE ALSO:
Trump’s Continued Assault On The Poor, Explained
Trump Claims He Won’t Run For President, Again (Probably Because He Can’t)
Trump To Garnish Defaulted Student Loan Borrowers’ Wages This Summer
was originally published on
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