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Trump Administration Targets 9.3 Million Student-Loan Defaulters

By Drooid · Oct 29, 2026 · How we work

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U.S. President Donald Trump’s administration is intensifying collection actions against defaulted student-loan borrowers.
Federal data show 9.3 million borrowers were in default as of June 30, 2026, representing $234 billion.
The administration may garnish up to 15 percent of wages and intercept federal tax refunds.
Democratic lawmakers are proposing legislation to block wage and Social Security garnishment of borrowers.

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U.S. President Donald Trump’s administration is intensifying collection actions against defaulted student-loan borrowers.
Federal data show 9.3 million borrowers were in default as of June 30, 2026, representing $234 billion.
The administration may garnish up to 15 percent of wages and intercept federal tax refunds.
Democratic lawmakers are proposing legislation to block wage and Social Security garnishment of borrowers.