A new era for student loans begins with
garnished wages on the table
The Hill,
by
Lexi Lonas Cochran
Original Article
Posted By: 4250Luis,
5/4/2025 9:32:46 AM
Starting Monday, student loan borrowers who find themselves in default will face government-backed involuntary collections, signaling a brand new landscape after years of pauses, delays and Biden-era relief efforts.
Garnished tax returns, Social Security payments and even wages will all be fair game on May 5 after a five-year pause on severe financial consequences that began during the economic upheaval of the COVID-19 pandemic. The Trump administration has made clear no additional debt forgiveness will be offered to borrowers as congressional Republicans look to revamp the student loan repayment system.
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Reply 1 - Posted by:
cartcart 5/4/2025 9:57:49 AM (No. 1945015)
I’m glad that I was too stupid to borrow money for college. I thought you had to work myself through. It took a lot if night classes so I could work during the days, and it took two extra years to do it, but earning a diplomas was better than buying it with student loans. It’s harder now, I know. That all said, don’t incur student loans.
27 people like this.
Reply 2 - Posted by:
jalo1951 5/4/2025 10:06:57 AM (No. 1945021)
Suck it up, grow up, and pay your own bills. It's not that hard to understand. You took out the loan you pay back the loan. FJB did you no favors by dangling the thought of non repayment in front of your face. You want a degree in Black Lesbian Poetry go for it. But you pay for it.
38 people like this.
Reply 3 - Posted by:
DVC 5/4/2025 10:28:38 AM (No. 1945033)
Great news. Make these deadbeats pay off their loans. They got the money, then they spent it, past time to repay.
These were LOANS and not grants. Pay upl.
30 people like this.
Reply 4 - Posted by:
nwcudagal 5/4/2025 10:29:47 AM (No. 1945034)
The people I knew who had student loans used the money to party.
17 people like this.
Reply 5 - Posted by:
stablemoney 5/4/2025 10:40:09 AM (No. 1945038)
Return student lending to the banks. The government needs to get out of this business that Obama nationalized.
37 people like this.
Reply 6 - Posted by:
WWIIDaughter 5/4/2025 10:41:31 AM (No. 1945039)
I had small student loans in 1970, when I started college. After I graduated, my first job was teaching public school in the poorest part of the Deep South for $700/month. I knew that as soon as I missed a payment, my check would be garnished immediately by our little local bank. I knew it because that was what I agreed to when I took other people's money as a loan. I paid the money back on time because it would have been stealing and lying to have done otherwise. And I didn't want my wages garnished.
24 people like this.
Reply 7 - Posted by:
bighambone 5/4/2025 11:10:15 AM (No. 1945052)
If all the information in the about the inability of student loan borrowers to pay back their loans is factual, why were those loans allowed to happen in the first place? Looks like as far as the leftist and progressive Democrats were concerned, the student loan programs were turned into essentially DEI Programs where the borrowers with a “wink and a nod” were never expected to pay their loans back. Then purposely the Biden era, BIDEN’s crew decided to supercharge the program by claiming that most student loans would be forgiven, without having the authority to do so in an effort to “buy” the votes of the students who were told to forget paying back their student loans?
10 people like this.
Reply 8 - Posted by:
oldmagnolia 5/4/2025 11:34:37 AM (No. 1945070)
#7 There are quite a few reasons as I see it. First of all, the high school pushes everybody to go to "college" knowing full well many of them are not college material and can do better in a trade. With the abuse of student loans, the colleges got rich. Take a look at any campus and they look like resorts. They collected the money and the student left with the debt without an education. Those who are in default should be called upon to pay. Probably, the majority of them are those with "studies" good for nothing degrees. Then you have those loans who are in forbearance because, for one reason or another one, they cannot come up with big payments. Those loans should be looked upon individually and reevaluate. The times that you could work your way to pay the tuition are over when a year tuition is $40,000.
13 people like this.
Reply 9 - Posted by:
bighambone 5/4/2025 12:09:30 PM (No. 1945090)
Maybe Trump should thing about having Congress pass legislation to cancel the repayments of student loans for very worthwhile degrees like for one, bachelors degrees in nursing for those who are working in nursing, but not for worthless degrees?
5 people like this.
Reply 10 - Posted by:
Strike3 5/4/2025 12:15:32 PM (No. 1945092)
That's all fine unless you are a member of the basement-dwelling, parasitic permanent child, video-gaming class and there are far more of those than the government realizes.
7 people like this.
Reply 11 - Posted by:
Daisymay 5/4/2025 12:20:53 PM (No. 1945094)
These are College grads. THEY should be able to figure out a way to repay their Debt that was suppose to allow them to get a good job and make great money! OH NO! That didn't happen?? Well, not my problem! I don't need to pay for someone else to go to College. If your Major was in Knitting or Swimming, I guess that means you had bad judgement on your future. Or maybe you just went to College to have a fun time and never planned to work at all! You're responsible for that as well! There seems to be a lot of you out there! Sleep all day and Party all night is what you thought your World would be. Well, grow up! Pay your Loans or go to Jail. I hear they party all night there as well!
11 people like this.
Reply 12 - Posted by:
earlybird 5/4/2025 12:31:15 PM (No. 1945098)
Didn't we learn some time ago that most student loan borrowers were graduate students? I agree that the government should not be involved in these loans. These should be done by banks. They will do a much more businesslike job with no politics. And garnishment is appropriate. Just do it!!!
12 people like this.
Reply 13 - Posted by:
earlybird 5/4/2025 12:34:53 PM (No. 1945100)
It's pretty common knowledge that the government student loan program simply caused colleges/universities to raise their tuitions.
15 people like this.
Reply 14 - Posted by:
Birddog 5/4/2025 12:44:30 PM (No. 1945104)
I think the biggest impact will be on credit scores, not garnishments or collections. College loan default debt was dropped from credit reporting rubrics....Millions of not only "Graduates" but also "Some College" people that didn't finish a degrees credit is going to plummet, their "Other" debt apr's will likely skyrocket. I had a FEMA position offer rescinded/withdrawn when my son went into default on HIS college loans.In order to get into a payment plan.....the Govt required he agree to a 15%"penalty" and increase in the overall debt amount.It also involved in a near doubling of APR. A "Great Reset" may be in order...Govt deciding to reset the debt to "Principle only" erasing penalties and interest accrued prior to the "New" collection protocols...5 years of 6.75% interest is a 33.75% debt increase.There are as many who were already in default prior to the "Pause", and who knows how many that received notice that their debt had been wiped clean by various Biden "Orders".
7 people like this.
Reply 15 - Posted by:
earlybird 5/4/2025 12:45:53 PM (No. 1945105)
As might be expected from the leftist Hill, this woe-is-me piece goes into how this will cause problems keeping food on the table. There is even an organization to protect these poor souls. And in the end it descends into a hit piece on PDJT and Congress Republicans. Trying much to swing votes?
4 people like this.
Reply 16 - Posted by:
FLCracker 5/4/2025 1:37:32 PM (No. 1945134)
My Uncle Sam paid for most of my college education after I gave him three years of military service.
The military service gave me the perspective to choose a degree program that suited my talents and ambitions, and to understand what that education was worth of my time and effort (no cutting classes by either me OR the professors). Plus training in a job skill and work experience.
(States of Florida and Texas paid for the rest. Florida because of academic excellence in high school; Texas for becoming a Texas Veteran by serving in the Reserve while a resident of the state, which qualified me for Texas' version of the GI Bill.)
7 people like this.
Reply 17 - Posted by:
JHHolliday 5/4/2025 2:01:52 PM (No. 1945142)
I borrowed some money from various sources to get my four through college. Paid it all back, and I wasn't making much back then, and it was quite a struggle. No vacations, no new cars, etc. but we got it done. It was actually a good lesson on managing your finances and prioritizing between what you want and what you need. I am afraid a lot of young people will learn some hard lessons about "free" money.
9 people like this.
Reply 18 - Posted by:
greggojo 5/4/2025 3:44:10 PM (No. 1945177)
The article mentions the statement made by the Student Borrowers Protection Agency (or something like that) so I looked them up. Uh oh, a non profit, so I tried to find what the executives of this group paid themselves to "help" the student borrowers. What I could find was: "Mike Pierce, the co-founder and executive director of SBPC, was paid $276,513 in total compensation for 2023" I wonder how much he pays himself in 2025?
4 people like this.
Reply 19 - Posted by:
anniebc 5/4/2025 4:25:34 PM (No. 1945198)
We're talking about the whiny 40 percent who stopped paying their loans. Why are they so special that the rest of US have to pay their bills? Some of them have taken their cases to the internet and social media, and guess who they blame. Not the ones who got government in the student loan business and not the ones who charge outrageous interest and charges at default. They blame Trump. Imagine that.
The government has been predatory (just like credit card companies), taking advantage of young people who used exorbitant amounts of money to pay for housing, partying, travel, etc., while not providing proper counseling on what they were getting into or signing that led to tens of thousands of dollars of debt before they got jobs to pay for it. They colluded with educational institutions, some with endowments that could have given away tuition for free. America is full of grift, waste, fraud, and abuse. All thanks to criminals in government.
7 people like this.
Reply 20 - Posted by:
TXknitter 5/4/2025 11:36:19 PM (No. 1945359)
Well #9, your idea sounds kind but those with worthwhile degrees made a commitment to sign for a loan too. They should have good jobs by now and honor that like everyone else.
2 people like this.
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