SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
u.s. department of education
Trump Admin Will Garnish Struggling Borrowers' Wages as Student Loan Payments Resume
"This is just cruel and doesn't have to happen," said the Debt Collective.
Apr 21, 2025
The Trump administration on Monday announced that it will resume involuntary collection measures against defaulted federal student loan recipients, including garnishing wages, tax refunds, and Social Security benefits and "other actions to help borrowers get back into repayment," as the U.S. Department of Education euphemistically said.
"Resuming collections protects taxpayers from shouldering the cost of federal student loans that borrowers willingly undertook to finance their postsecondary education," DOE said in a statement notifying the public that collections will resume May 5. "This initiative will be paired with a comprehensive communications and outreach campaign to ensure borrowers understand how to return to repayment or get out of default."
The DOE said the U.S. Treasury Offset Program will administer borrower garnishments, which are expected to resume this summer.
DOE continued:
While Congress mandated that student and parent borrowers begin to repay their student loans in October 2023, the Biden-Harris administration refused to lift the collections pause and kept borrowers in a confusing limbo. The previous administration failed to process applications for borrowers who applied for income-driven repayment and continued to push misguided "on-ramps" and illegal loan forgiveness schemes to win points with borrowers and mask rising delinquency and default rates.
"American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies," billionaire U.S. Education Secretary Linda McMahon said on Monday.
The repayment resumption is part of the Trump administration's three-pronged, $1.6 trillion overhaul of the federal student loan system. In addition to moving to collect on defaulted loans, the administration is looking to end former President Joe Biden's Saving on a Valuable Education (SAVE) plan, an income-driven repayment program currently blocked by a federal appellate court. President Donald Trump also signed an executive order narrowing eligibility for the Public Service Loan Forgiveness program.
Last month, the American Federation of Teachers led a lawsuit against the Trump administration after the DOE cut off access to income-driven repayment plan applications and secretly ordered student loan services to stop accepting and processing such applications.
The government has not collected on defaulted student loans since March 2020, when the first Trump administration paused repayments due to the burgeoning Covid-19 pandemic. The reprieve, which was subsequently extended several times, was set to end in September 2023. Efforts by the Biden administration to forgive some or all loan debt for more than 45 million student borrowers were thwarted by the right-wing U.S. Supreme Court in 2023.
"The Biden administration misled borrowers: The executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear," said McMahon. "Hundreds of billions have already been transferred to taxpayers."
"Going forward, the Department of Education, in conjunction with the Department of Treasury, will shepherd the student loan program responsibly and according to the law, which means helping borrowers return to repayment—both for the sake of their own financial health and our nation's economic outlook," she added.
As McMahon and the Trump administration work toward ending the DOE—a key goal of Project 2025, the Heritage Foundation-led plan to eviscerate the federal government—Trump has ordered the administration of federal student loans to be transferred to the Small Business Administration (SBA), which was headed by McMahon during Trump's first term.
Approximately 5.6 million student borrowers were in default at the end of 2024. The DOE warns that "there could be almost 10 million borrowers in default in a few months" after repayments resume. That's roughly 25% of the current student loan portfolio. Failure to make timely student loan repayments results in lower credit scores for borrowers, who in turn generate less economic activity—a domino effect with implications for the entire slowing U.S. economy.
"They bailed out banks, corporations, and airlines. But when it comes to student debt? Suddenly it's 'too expensive.'"
"Many of the households required to resume paying on their student loans are also struggling with credit card debt at near-record interest rates and high-rate mortgages they thought they would be able to refinance into a lower rate, but haven't," explained Moody's Analytics chief economist Mark Zandi in a Monday interview with The New York Times.
Some critics slammed the Trump administration for resuming student loan repayments amid an affordability and housing crisis during which a record number of people are unhoused.
"Parents delaying retirement. Grads postponing families. This isn't 45 million separate problems, it's one national crisis," the Student Debt Crisis Center (SDCC) said on social media. "They bailed out banks, corporations, and airlines. But when it comes to student debt? Suddenly it's 'too expensive.'"
SDCC executive director Mike Pierce said that "federal law gives borrowers a way out of default and the right to make loan payments they can afford. Since February, Donald Trump and Linda McMahon have blocked these borrowers' path out of default and are now feeding them into the maw of the government debt collection machine."
"This is cruel, unnecessary, and will further fan the flames of economic chaos for working families across this country," Pierce added.
Tuition-free college would help make America great. Those who need loans to attend college come from working class families, the elites don’t need loans. 40% of student debt holders don’t hold a degree. This will hurt the working class.
[image or embed]
— Nina Turner (@ninaturner.bsky.social) April 21, 2025 at 2:07 PM
Others offered solutions enjoyed by people in other countries, including simply not collecting the debt and making colleges and universities tuition-free—even if their chances of implementation under what many leftists call U.S. "late-stage capitalism" are next to nil.
"If the Trump/Musk administration really wanted 'government efficiency,' then they wouldn't be collecting on debts people cannot and will not pay,"
said the Debt Collective, a debtors' union, referring to Elon Musk, who heads the Department of Government Efficiency. "They would just cancel it and boost the economy."
Keep ReadingShow Less
Governor Vows to 'Vigorously Defend' Maine From Trump Attack on Trans Women
"This is not just about who can compete on the athletic field, this is about whether a president can force compliance with his will, without regard for the rule of law that governs our nation," said Janet Mills.
Apr 16, 2025
Democratic Maine Gov. Janet Mills responded Wednesday to a U.S. Department of Justice lawsuit against the state for defying President Donald Trump's efforts to ban transgender women and girls from female sports by vowing to defend the rule of law against what she called the White House's illegal attacks.
"Today is the latest, expected salvo in an unprecedented campaign to pressure the state of Maine to ignore the Constitution and abandon the rule of law," Mills said in response to the lawsuit, which accuses state officials of "openly and defiantly flouting federal anti-discrimination law by enforcing policies that require girls to compete against boys in athletic competitions designated exclusively for girls."
The suit comes days after the U.S. Department of Education (DOE) announced it would begin cutting off federal K-12 education funding following an agency investigation and after the state rejected a list of the Trump administration's demands regarding transgender student-athletes.
"This matter has never been about school sports or the protection of women and girls."
Mlils argued Wednesday that "this matter has never been about school sports or the protection of women and girls, as has been claimed, it is about states rights and defending the rule of law against a federal government bent on imposing its will, instead of upholding the law."
The Trump administration's sweeping war on transgender rights includes redefining Title IX anti-discrimination law to cancel protection for trans and nonbinary people, trying to reinstate his first-term ban on openly transgender people from military service, ending "X" gender markers on passports, banning federal support for gender-affirming healthcare, pressuring schools to censor lessons and materials about trans and nonbinary people, erasing transgender people and stories from government-run institutions and websites, and much more. Hundreds of anti-trans bills have also been passed or proposed in nearly every state.
Announcing the lawsuit at a DOJ press briefing, U.S. Attorney General Pam Bondi—who warned that other noncompliant states including California and Minnesota might also be sued—said that i"this has been a huge issue" for Trump.
"We have exhausted every other remedy," Bondi added. "We tried to get Maine to comply. We don't like standing up here and filing lawsuits, we want to get states to comply with us."
However, Mills said that U.S. District Judge John Woodcock's April 11 order for the Trump administration to unfreeze funding for a children's nutrition program that was suspended over the transgender athlete issue "reinforces our position that the federal government has been acting unlawfully."
Mills stoked Trump's ire for resisting his threats to cut off federal funding if she did not move to ban transgender women and girls from female teams—an action that would violate state law explicitly prohibiting gender identity-based discrimination. During a February White House meeting with governors, Trump called out Mills for her defiance and again threatened to cut off funding.
"We're going to follow the law, sir," Mills replied. "We'll see you in court."
This further incensed Trump, whose demand for Mills to apologize was widely mocked. The Trump administration then temporarily forced new Maine parents to register their newborns for a Social Security number at a government office rather than at hospitals, a policy quickly rescinded amid public uproar.
Earlier this month, Maine sued the Trump administration in a bid to stop it from implementing any funding freeze.
"For nearly two months, Maine has endured recriminations from the federal government that have targeted hungry school kids, hardworking fishermen, senior citizens, new parents, and countless Maine people," Mills said Wednesday. "We have been subject to politically motivated investigations that opened and closed without discussion, leaving little doubt that their outcomes were predetermined."
"Let today serve as warning to all states: Maine might be among the first to draw the ire of the federal government in this way, but we will not be the last," Mills said.e "My administration and Maine's attorney general will vigorously defend our state against the action announced today from the Department of Justice."
"This is not just about who can compete on the athletic field, this is about whether a president can force compliance with his will, without regard for the rule of law that governs our nation," she added. "I believe he cannot."
Keep ReadingShow Less
Groups Sue Trump for Dismantling Education Department 'By Executive Fiat'
"Education is power," said one advocate. "The forceful elimination of thousands of essential workers will harm the most vulnerable in our communities."
Mar 24, 2025
The nation's largest labor union, representing more than 3 million educators, is among several groups that filed a lawsuit against the Trump administration Monday to demand a federal court "immediately halt the government's attempt to dismantle" the U.S. Department of Education—warning that the move by President Donald Trump is clearly illegal and "puts at risk the millions of vulnerable students."
The National Education Association (NEA) said it is joining the National Association for the Advancement of Colored People (NAACP), AFSCME Maryland Council 3, and several public school parents in suing the administration days after Trump signed an executive order calling on Education Secretary Linda McMahon to take "all necessary steps to facilitate the closure of the Department of Education."
That directive followed the slashing of roughly half of the workforce at the Department of Education and the termination of $1.5 billion in contracts and grants for educational programs that had already been approved by Congress, and came a day before the president announced that $1.8 trillion in student loan debt would be overseen by the Small Business Administration instead of the DOE, while the Health and Human Services Department will direct programs for students with disabilities.
The administration has insisted the DOE is rife with "bureaucratic bloat" and waste—the same accusations Trump and his billionaire ally, Elon Musk of the so-called Department of Government Efficiency, have lobbed at programs like Social Security, Medicaid, and other services for low-income and working Americans as they've sought to secure $4.5 trillion in permanent tax cuts for the richest Americans.
The steps the administration has taken against the DOE "constitute a de facto dismantling of the department by executive fiat," reads the complaint filed Monday, noting that "the Constitution gives power over 'the establishment of offices [and] the determination of their functions and jurisdiction' to Congress—not to the president or any officer working under him."
"America's educators and parents won't be silent as Donald Trump, Elon Musk, and Linda McMahon try to steal opportunities from our students, our families, and our communities to pay for tax cuts for billionaires."
The attempted closure of the DOE is the latest of several actions taken by the Trump administration that violate the Constitution, said the NEA, because the department is a "congressionally created federal agency" and its dismantling "requires congressional approval."
Federal courts have blocked Trump's attempt to freeze federal grants and loans, noting that the president cannot halt funding that has been appropriated by Congress, and his deportation of Venezuelan immigrants to El Salvador under the Alien Enemies Act after opponents argued in court that Trump was "trying to write Congress' limits out of the act."
Aaron Ament, president of the Student Defense and Education Law Center, which is representing the plaintiffs in the lawsuit filed Monday, noted that McMahon "has acknowledged they can't legally shut down the Department of Education without Congress."
"Yet that is, for all intents and purposes, exactly what they are doing," said Ament, "a brazen violation of the law that will upend the lives of countless students and families."
Advocates have warned that while state and local governments oversee the vast majority of the U.S. public education system, shutting down the DOE jeopardizes funding an support for students who have disabilities, live in rural areas, and face discrimination.
It would also make it "impossible for the department to ensure that federal education funding actually is spent as Congress intended" and could "reduce access to Pell Grants, upend repayments for student loan borrowers, and invite fraudulent and predatory behavior from unscrupulous institutions of higher education," said the NEA.
The union's president, Becky Pringle, said Monday that "gutting the Department of Education will hurt all students by sending class sizes soaring, cutting job training programs, making higher education more out of reach, taking away special education services for students with disabilities, and gutting student civil rights protections."
"America's educators and parents won't be silent as Donald Trump, Elon Musk, and Linda McMahon try to steal opportunities from our students, our families, and our communities to pay for tax cuts for billionaires," said Pringle. "Parents, educators, and community leaders know this will widen the gaps in education, which is why we will do everything in our power to protect our students and their futures."
Derrick Johnson, president and CEO of the NAACP, said Trump's overarching goal in dismantling the DOE is "deliberately destroying the pathway many Americans have to a better life."
"Education is power," said Johnson. "The forceful elimination of thousands of essential workers will harm the most vulnerable in our communities. The NAACP and our partners are equipped with the necessary legal measures to prevent this unlawful attack on our children's future."
Keep ReadingShow Less
Most Popular