Trump admin to seize wages, pensions of those in default on student loan debt
The White House has announced its plans to target Biden-era student loan forgiveness programs in an effort to ensure that those who default or refuse to pay their federal student loans are held accountable. White House press secretary Karoline Leavitt stated in a briefing that the Trump administration will be taking action to garnish wages, federal pensions, and tax refunds of individuals who do not repay their student loans, rather than burdening taxpayers with the cost.
The Department of Education has revealed that it will resume collections on defaulted federal student loans starting in May, marking the first time since 2020. With a student loan portfolio of nearly $1.6 trillion, Leavitt highlighted that fewer than four out of ten borrowers are currently up to date with their loans. Additionally, there are 4 million borrowers in the late-stage delinquency stage, meaning they are between 91 and 180 days late on payments.
Leavitt emphasized the unsustainable nature of the current student loan debt situation, stating that it is unfair to expect taxpayers to bear the burden of irresponsible borrowing. She stressed that debt cannot simply be wiped away and will ultimately be transferred to others, making it crucial for borrowers to fulfill their repayment obligations. The Trump administration aims to prevent taxpayers from being forced to pay off student loan debts that are not their own.
The Education Department anticipates that there could be almost 10 million individuals in default on their student loans in the coming months. Despite efforts by the Biden administration to implement student loan forgiveness programs, the Trump administration remains steadfast in its belief that taxpayers should not be responsible for trillions of dollars in student debt. Secretary of Education Linda McMahon echoed this sentiment, emphasizing that the executive branch lacks the constitutional authority to eliminate debt and that the burden should not fall on taxpayers.
In conclusion, the Trump administration is committed to holding borrowers accountable for their student loan debt and ensuring that taxpayers are not left to foot the bill. By implementing measures to garnish wages, pensions, and tax refunds, the administration aims to address the student loan debt crisis and restore fiscal responsibility. President Trump’s administration is taking a stand against irresponsible borrowing practices and prioritizing the need for borrowers to fulfill their repayment obligations.
