TRUMP ADMINISTRATION ANNOUNCED IT WILL START SEIZING WAGES FROM BORROWERS WITH FEDERAL STUDENT LOANS IN COLLECTIONS

According to reports, the Trump administration has announced it will resume debt collections for federal student loan borrowers who are in default, putting millions at risk of having their wages, tax refunds, and other federal payments withheld.

Starting May 5, the government will reactivate the Treasury Offset Program, which allows it to seize payments like tax refunds, Social Security, and federal salaries to recover unpaid debt.

Later this summer, the administration also plans to notify defaulted borrowers about wage garnishment—where up to 15% of their paychecks could be taken to repay their loans.