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Trump Administration Resumes Collections on 5M Student Loans

5/7/2025

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Summary

Story summary

The Trump administration has reignited collections on more than 5 million defaulted federal student loans, lifting a five-year freeze. Borrowers now risk wage garnishment, tax refund seizures, and even loss of Social Security benefits. The Education Department is urging individuals to check their loan status and consider repayment options to prevent devastating financial repercussions.

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Story summary

The Trump administration has reignited collections on more than 5 million defaulted federal student loans, lifting a five-year freeze. Borrowers now risk wage garnishment, tax refund seizures, and even loss of Social Security benefits. The Education Department is urging individuals to check their loan status and consider repayment options to prevent devastating financial repercussions.