Jul. 8 at 3:58 PM
$SPY The Trump administration has begun garnishing wages of student loan borrowers in default.🙃
in May of 2025, a five-year reprieve for student loan borrowers who were in default on their loans expired. That means that collections are now in play, and the Department of Education can garnish wages, tax refunds, and federal benefits.
“Resuming collections protects taxpayers from shouldering the cost of federal student loans that borrowers willingly undertook to finance their postsecondary education,” the Department of Education (DOE) wrote in a statement late April. “There will not be any mass loan forgiveness.”
This isn’t just a problem for an unlucky few. Around 20.5% of student loan borrowers have a payment that’s past due by 90 days or more, according to a TransUnion analysis. And around 5.3 million defaulted borrowers will get a notice from the Treasury Department that their wages could potentially be garnished -statement from DOE
$SOFI $SLM $NAVI $NNI 🥹
