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Activists and students protest in front of the Supreme Court during a rally for student debt cancellation in Washington, D.C., on February 28, 2023. A sign shows the amount of student debt owed in the U.S. at the time.
(Photo: Andrew Caballero-Reynolds/AFP via Getty Images)
'Unconscionable': Trump Ready to Garnish Wages for Indebted Student Loan Borrowers
"They're just cruel and want to take as much as possible from the folks who have very little," said one student borrower advocacy group.
May 05, 2025
With the Trump administration restarting collection efforts on defaulted student loans after a five-year reprieve on Monday, Mike Pierce of the Student Borrower Protection Center said the move "will further fan the flames of economic chaos for working families across this country"—particularly as the White House threatens to garnish the wages of people who struggle to make higher monthly payments.
The SBPC joined nearly 200 other organizations in sending a letter to the acting undersecretary of education, James Bergeron, condemning the administration's efforts to gut income-driven repayment options and eliminate the Public Service Loan Forgiveness Program, which has delivered student debt relief to 1 million public service workers since it was implemented in 2007.
"The administration should move to enact policies that better protect student borrowers, rather than pursue misguided policies that will drive up costs and weaken protections," wrote the groups.
More than 42 million Americans have student debt, with more than $1.6 trillion owed in total. More than 5 million borrowers are currently in default, and that number could grow to about 10 million as the Trump administration ends programs that have been aimed at helping people pay off their loans in manageable amounts each month.
Collections are beginning months after Republican-led lawsuits succeeded in blocking former President Joe Biden's Saving on a Valuable Education (SAVE) plan, and days after the GOP members of the House Education and Workforce Committee advanced more than $350 billion in proposed funding cuts for education programs—cuts that government watchdog Accountable.US said are "paving the way for tax cuts for themselves, billionaire donors, and corporations."
The Republicans approved:
- Slashing federal student aid by capping unsubsidized and Parent PLUS loans and eliminating subsidized loans for undergraduates and Grad PLUS loans entirely, which would disproportionately impact low-income families, especially those with students at HBCUs;
- Repealing a set of Biden-era protections—including rules establishing forgiveness for students of schools that closed or failed to lead to gainful employment—that have canceled at least $17.2 billion in federal student loans for nearly 1 million borrowers misled by predatory institutions;
- Repealing the Biden administration's SAVE plan and replacing it with just two fixed or income-based repayment plans, a change that could raise costs for millions of borrowers, including those making modest incomes; and
- Changing Pell Grant eligibility by altering the definition of full-time college attendance to 30 credit hours per year and requiring at least half-time attendance to qualify for any grant at all.
"To pay for tax cuts for the richest in this country, congressional Republicans are willing to gut the programs tens of millions of Americans rely on," said Tony Carrk, executive director of Accountable.US. "Their education markup makes it abundantly clear that they're not just going to gut Medicaid, they're proposing hundreds of billions of dollars of cuts to programs that provide more opportunities for everyday Americans to access higher education. These cuts are a betrayal of congressional Republicans' promise to make government work for Americans and to lower their costs; in fact, it will do quite the opposite."
The Debt Collective, a union of student loan borrowers, pointed out that the Trump administration isn't required by law to begin collecting student debt on Monday.
"They're just cruel and want to take as much as possible from the folks who have very little," said the group.
Aside from garnishing borrowers' wages, the administration could further devastate millions of people as credit scores could tank when the Education Department begins collection activity.
The Federal Reserve projected in March that people with delinquencies could see their credit scores plummet by as many as 171 points, leading to higher costs for borrowers who later take out mortgages, car loans, and sign up for credit cards.
U.S. Rep. Ayanna Pressley (D-Mass.) called President Donald Trump's threat to garnish wages in order to collect student debt "unconscionable."
The president and Education Secretary Linda McMahon, said Pressley, "should NOT be seizing people's hard-earned wages, tax refunds, and Social Security checks."
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With the Trump administration restarting collection efforts on defaulted student loans after a five-year reprieve on Monday, Mike Pierce of the Student Borrower Protection Center said the move "will further fan the flames of economic chaos for working families across this country"—particularly as the White House threatens to garnish the wages of people who struggle to make higher monthly payments.
The SBPC joined nearly 200 other organizations in sending a letter to the acting undersecretary of education, James Bergeron, condemning the administration's efforts to gut income-driven repayment options and eliminate the Public Service Loan Forgiveness Program, which has delivered student debt relief to 1 million public service workers since it was implemented in 2007.
"The administration should move to enact policies that better protect student borrowers, rather than pursue misguided policies that will drive up costs and weaken protections," wrote the groups.
More than 42 million Americans have student debt, with more than $1.6 trillion owed in total. More than 5 million borrowers are currently in default, and that number could grow to about 10 million as the Trump administration ends programs that have been aimed at helping people pay off their loans in manageable amounts each month.
Collections are beginning months after Republican-led lawsuits succeeded in blocking former President Joe Biden's Saving on a Valuable Education (SAVE) plan, and days after the GOP members of the House Education and Workforce Committee advanced more than $350 billion in proposed funding cuts for education programs—cuts that government watchdog Accountable.US said are "paving the way for tax cuts for themselves, billionaire donors, and corporations."
The Republicans approved:
- Slashing federal student aid by capping unsubsidized and Parent PLUS loans and eliminating subsidized loans for undergraduates and Grad PLUS loans entirely, which would disproportionately impact low-income families, especially those with students at HBCUs;
- Repealing a set of Biden-era protections—including rules establishing forgiveness for students of schools that closed or failed to lead to gainful employment—that have canceled at least $17.2 billion in federal student loans for nearly 1 million borrowers misled by predatory institutions;
- Repealing the Biden administration's SAVE plan and replacing it with just two fixed or income-based repayment plans, a change that could raise costs for millions of borrowers, including those making modest incomes; and
- Changing Pell Grant eligibility by altering the definition of full-time college attendance to 30 credit hours per year and requiring at least half-time attendance to qualify for any grant at all.
"To pay for tax cuts for the richest in this country, congressional Republicans are willing to gut the programs tens of millions of Americans rely on," said Tony Carrk, executive director of Accountable.US. "Their education markup makes it abundantly clear that they're not just going to gut Medicaid, they're proposing hundreds of billions of dollars of cuts to programs that provide more opportunities for everyday Americans to access higher education. These cuts are a betrayal of congressional Republicans' promise to make government work for Americans and to lower their costs; in fact, it will do quite the opposite."
The Debt Collective, a union of student loan borrowers, pointed out that the Trump administration isn't required by law to begin collecting student debt on Monday.
"They're just cruel and want to take as much as possible from the folks who have very little," said the group.
Aside from garnishing borrowers' wages, the administration could further devastate millions of people as credit scores could tank when the Education Department begins collection activity.
The Federal Reserve projected in March that people with delinquencies could see their credit scores plummet by as many as 171 points, leading to higher costs for borrowers who later take out mortgages, car loans, and sign up for credit cards.
U.S. Rep. Ayanna Pressley (D-Mass.) called President Donald Trump's threat to garnish wages in order to collect student debt "unconscionable."
The president and Education Secretary Linda McMahon, said Pressley, "should NOT be seizing people's hard-earned wages, tax refunds, and Social Security checks."
From Your Site Articles
- Analysis Warns Student Debt Crisis 'Would Likely Worsen' If Trump Elected ›
- Trump Admin Will Garnish Struggling Borrowers' Wages as Student Loan Payments Resume ›
Related Articles Around the Web
With the Trump administration restarting collection efforts on defaulted student loans after a five-year reprieve on Monday, Mike Pierce of the Student Borrower Protection Center said the move "will further fan the flames of economic chaos for working families across this country"—particularly as the White House threatens to garnish the wages of people who struggle to make higher monthly payments.
The SBPC joined nearly 200 other organizations in sending a letter to the acting undersecretary of education, James Bergeron, condemning the administration's efforts to gut income-driven repayment options and eliminate the Public Service Loan Forgiveness Program, which has delivered student debt relief to 1 million public service workers since it was implemented in 2007.
"The administration should move to enact policies that better protect student borrowers, rather than pursue misguided policies that will drive up costs and weaken protections," wrote the groups.
More than 42 million Americans have student debt, with more than $1.6 trillion owed in total. More than 5 million borrowers are currently in default, and that number could grow to about 10 million as the Trump administration ends programs that have been aimed at helping people pay off their loans in manageable amounts each month.
Collections are beginning months after Republican-led lawsuits succeeded in blocking former President Joe Biden's Saving on a Valuable Education (SAVE) plan, and days after the GOP members of the House Education and Workforce Committee advanced more than $350 billion in proposed funding cuts for education programs—cuts that government watchdog Accountable.US said are "paving the way for tax cuts for themselves, billionaire donors, and corporations."
The Republicans approved:
- Slashing federal student aid by capping unsubsidized and Parent PLUS loans and eliminating subsidized loans for undergraduates and Grad PLUS loans entirely, which would disproportionately impact low-income families, especially those with students at HBCUs;
- Repealing a set of Biden-era protections—including rules establishing forgiveness for students of schools that closed or failed to lead to gainful employment—that have canceled at least $17.2 billion in federal student loans for nearly 1 million borrowers misled by predatory institutions;
- Repealing the Biden administration's SAVE plan and replacing it with just two fixed or income-based repayment plans, a change that could raise costs for millions of borrowers, including those making modest incomes; and
- Changing Pell Grant eligibility by altering the definition of full-time college attendance to 30 credit hours per year and requiring at least half-time attendance to qualify for any grant at all.
"To pay for tax cuts for the richest in this country, congressional Republicans are willing to gut the programs tens of millions of Americans rely on," said Tony Carrk, executive director of Accountable.US. "Their education markup makes it abundantly clear that they're not just going to gut Medicaid, they're proposing hundreds of billions of dollars of cuts to programs that provide more opportunities for everyday Americans to access higher education. These cuts are a betrayal of congressional Republicans' promise to make government work for Americans and to lower their costs; in fact, it will do quite the opposite."
The Debt Collective, a union of student loan borrowers, pointed out that the Trump administration isn't required by law to begin collecting student debt on Monday.
"They're just cruel and want to take as much as possible from the folks who have very little," said the group.
Aside from garnishing borrowers' wages, the administration could further devastate millions of people as credit scores could tank when the Education Department begins collection activity.
The Federal Reserve projected in March that people with delinquencies could see their credit scores plummet by as many as 171 points, leading to higher costs for borrowers who later take out mortgages, car loans, and sign up for credit cards.
U.S. Rep. Ayanna Pressley (D-Mass.) called President Donald Trump's threat to garnish wages in order to collect student debt "unconscionable."
The president and Education Secretary Linda McMahon, said Pressley, "should NOT be seizing people's hard-earned wages, tax refunds, and Social Security checks."
From Your Site Articles
- Analysis Warns Student Debt Crisis 'Would Likely Worsen' If Trump Elected ›
- Trump Admin Will Garnish Struggling Borrowers' Wages as Student Loan Payments Resume ›
Related Articles Around the Web
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