Trump Admin to Seize Student Loan Payments

Trump Admin to Seize Student Loan Payments

Update: 2025-12-23
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The Trump administration plans to start seizing student loan payments from defaulted borrowers wages, starting early next year. The first notices will go out to one thousand borrowers, with the number growing each month. This move will disproportionately affect low-income households and those on public assistance, who are already struggling with soaring costs and a shaky job market. The government paused collections during the pandemic but resumed them in May, catching many borrowers off guard. Upcoming changes in the One Big Beautiful Bill Act could drive even more defaults. This aggressive collections push adds real strain on struggling families and carries political risks for the administration.

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Trump Admin to Seize Student Loan Payments

Trump Admin to Seize Student Loan Payments