The administration is unlikely to announce the new enforcement measures until after the midterm elections. While Treasury officials are attempting to minimize the impact on low income borrowers, a former judge warned that the policy overhaul could trigger an increase in student loan bankruptcy filings.
Wednesday, October 21, 2026
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Trump Admin to Garnish Student Loan Wages and Hire Private Debt Collectors
US Politics2 days ago
The Treasury Department, the Office of Management and Budget, and the Department of Education have resolved an internal dispute regarding the recovery of delinquent federal debts. The Trump administration will now move forward with a plan to garnish the wages and benefits of borrowers who have defaulted on federal student loans, while hiring private debt collectors and imposing financial penalties to recover the funds.
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