Student loans in default will once again be subject to wage garnishment and debt collection starting May 5, ending a five-year pause. That means over 5 million Americans could soon see their tax refunds withheld, paychecks docked, or benefits seized.
In the midst of legal chaos, Education Secretary Linda McMahon announced this move under Trump’s directive. Borrowers are being pushed back into repayment — some with no clear path out. Adding to the confusion is the fact that the Education Department is facing shutdown orders.
In Context: Harvard sues federal government after Trump cuts billions.
Bonus: In 2025, how much will borrowers owe on student loans?
