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Trump-Directed Treasury Restarts Involuntary Student Loan Collections in 2027

By Drooid · Oct 20, 2026, 11:47 PM UTC · How we work

Summary

Story summary

The Treasury, directed by President Donald Trump, will restart involuntary student loan collections in 2027.
The Treasury may hire private collection agencies as early as November.
The government can garnish up to 15 percent of wages after a 30-day notice.
The Treasury Offset Program can intercept federal tax refunds and Social Security benefits.
Loan rehabilitation requires nine monthly payments and can erase default from credit reports.

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Story summary

The Treasury, directed by President Donald Trump, will restart involuntary student loan collections in 2027.
The Treasury may hire private collection agencies as early as November.
The government can garnish up to 15 percent of wages after a 30-day notice.
The Treasury Offset Program can intercept federal tax refunds and Social Security benefits.
Loan rehabilitation requires nine monthly payments and can erase default from credit reports.