Individuals who default on or fail to repay their federal student loans could face wage garnishment, as well as the loss of federal pensions and tax refunds, the White House announced on Tuesday.
During her weekly briefing, White House press secretary Karoline Leavitt stated that the Trump administration plans to hold borrowers accountable rather than shifting the financial burden to taxpayers.
“The government will actively recover unpaid student loan debt through methods such as withholding tax refunds, pensions, and wages,” Leavitt said. She added that the Department of Education will resume collections in May, marking the first time since 2020 that efforts to recover defaulted student loans will restart.
Leavitt highlighted that the nation’s student loan debt has reached nearly $1.6 trillion, with fewer than 40% of borrowers staying current on their payments. Currently, 4 million borrowers are significantly behind, having missed payments by 91 to 180 days. “This situation is unsustainable and unfair, and it poses a major risk to taxpayers,” Leavitt said. “Debt doesn’t disappear—it just gets shifted onto others.”
She questioned why Americans who either didn’t attend college or who responsibly paid off their student loans should bear the costs of those who haven’t. “The Trump administration will not force taxpayers to absorb student debt that isn’t theirs.”
The Education Department estimates that, in the coming months, as many as 10 million people could enter default. Secretary of Education Linda McMahon criticized the Biden administration’s efforts to cancel student debt, stating that such actions misled borrowers and exceeded constitutional authority.
“Taxpayers will no longer be treated as collateral for reckless student loan policies,” McMahon said. “The notion that debt can simply be erased is false—hundreds of billions have already been shifted to taxpayers.”
Leavitt concluded by reaffirming the Trump administration’s stance on fiscal responsibility: “We need to restore financial discipline. If you borrow money, you’re responsible for paying it back. President Trump will no longer delay the hard decisions this country needs to make.”
