Beginning Monday, student loan borrowers who default on their payments will once again face government-enforced collections — including wage, tax refund, and Social Security garnishments — ending a five-year pause initiated during the COVID-19 crisis.
The Biden-era relief efforts have given way to a tougher approach under the Trump administration, which has ruled out further debt forgiveness.
Borrowers fall into delinquency after 90 days of missed payments, leading to credit damage, and into default after 270 days, opening the door to involuntary collections. While affected individuals will receive a 30-day notice before wage garnishment begins, up to 15% of paychecks could be withheld.
Education Secretary Linda McMahon emphasized that taxpayers will no longer subsidize what she called “irresponsible” loan policies, asserting that debt cancellation exceeds executive authority.
Borrower advocates warn the policy shift disproportionately impacts those least able to pay, and urge struggling borrowers to contact loan servicers, explore income-driven repayment plans, or consolidate loans.
Experts also warn of reduced oversight at the Education Department, which has experienced massive staffing cuts, possibly weakening support for borrowers navigating the new system. Meanwhile, House Republicans are proposing repayment reforms that critics argue could raise costs for many.
