Trump administration to resume defaulted student loan collections

PoliticsPersonal Finance
23 Apr 2025 • 4:25 AM MYT
The Independent
The Independent

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Donald Trump's press secretary Karoline Leavitt has announced that the Department of Education will resume student loan collections from those in default from May 5, after being paused in 2020 due to the coronavirus pandemic.

Joe Biden attempted to forgive student loans for millions of borrowers, but was stopped by the courts.

Leavitt told reporters on Tuesday: "The government can and will collect defaulted borrowers' student loan debt by withholding money from borrowers' tax refunds, federal pensions, and even their wages."

She added America “must get [its] fiscal house in order”, stating $1.6 trillion is owed in student debt.

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