Trump administration resumes student debt collection
The gist
The Trump administration is reportedly preparing to restart collections on defaulted federal student loans, possibly in 2027.
Millions of defaulted borrowers could face seized tax refunds and garnished wages.
How it unfolded
- 2020Student loan payments were suspended during the COVID-19 era.
- 2025 -03Responsibility for collecting defaulted federal loans shifted from the Education Department to the Treasury Department.
- Apr 22, 2025The Trump administration announced it would resume collecting pending federal student loans after the pandemic-era pause, announcing measures including tax refund offset and wage garnishment.