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Trump’s Loan Collection Crackdown Targets Midterms Defaults

By Drooid · Oct 27, 2026, 2:58 AM UTC · How we work

Summary

Story summary

U.S. President Donald Trump’s administration is preparing intensified student-loan collections before the November 3 midterms.
Federal data show 9.3 million borrowers in default and 1.5 million in late delinquency as of June 30.
An additional 400,000 borrowers defaulted by June, raising total defaults above 9 million.
Wage garnishment could seize up to 15 percent of wages and intercept tax refunds, affecting 88 percent of voters.

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Story summary

U.S. President Donald Trump’s administration is preparing intensified student-loan collections before the November 3 midterms.
Federal data show 9.3 million borrowers in default and 1.5 million in late delinquency as of June 30.
An additional 400,000 borrowers defaulted by June, raising total defaults above 9 million.
Wage garnishment could seize up to 15 percent of wages and intercept tax refunds, affecting 88 percent of voters.