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Student Loan Collections Restart as Weight Watchers Files Bankruptcy

5/10/2025

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Story summary
  • The Trump administration restarts student loan collections, affecting borrowers in default and potentially withholding federal benefits next month.
  • Nearly 200,000 borrowers received notifications, while 5.3 million will be warned about wage garnishment this summer.
  • Weight Watchers has filed for Chapter 11 bankruptcy, facing $1 billion in debt, but aims to restructure operations.