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Today's Political News Compilation - Monday, April 21, 2025

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Below are some of the top political news stories of the day:



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Student loans in default to be referred to debt collection, Education Department says

By ANNIE MA
Updated 7:52 PM CDT, April 21, 2025

WASHINGTON (AP) — The Education Department will begin collection next month on student loans that are in default, including the garnishing of wages for potentially millions of borrowers, officials said Monday.

Currently, roughly 5.3 million borrowers are in default on their federal student loans.

The Trump administration ’s announcement marks an end to a period of leniency that began during the COVID-19 pandemic. No federal student loans have been referred for collection since March 2020, including those in default. Under President Joe Biden, the Education Department tried multiple times to give broad forgiveness of student loans, only to be stopped by courts.

“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” Education Secretary Linda McMahon said.

Beginning May 5, the department will begin involuntary collection through the Treasury Department’s offset program, which withholds government payments — including tax refunds, federal salaries and other benefits — from people with past-due debts to the government. After a 30-day notice, the department also will begin garnishing wages for borrowers in default.

The decision to send debt to collections drew criticism from advocates, who said borrowers had experienced whiplash and confusion with the changing student loan policies between the Biden and Trump administrations. ...

READ THE FULL STORY - AP

















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  • News source: Politics - CBSNews.com
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Student loan borrowers in default face garnished wages

  • News source: Politics - CBSNews.com
  • Replies: 0
  • Views: 12
Washington — The Education Department will soon begin collecting payments for student loans that are in default, including through wage garnishment for potentially millions of borrowers, the department announced Monday.

Beginning May 5, the Education Department will begin involuntary collections through the Treasury Department's offset program, which claws back delinquent debts by withholding payments such as tax refunds, federal salaries and Social Security benefits.

More than 5 million borrowers are in default and 4 million more could be in the...
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  • News source: Dennis Romero | NBC News
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"Beginning May 5, the department will begin involuntary collection through the Treasury Department’s offset program, which withholds payments from the government — including tax refunds, federal salaries and other benefits — from people with past-due debts to the government," the department said in a...
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  • News source: Politics - CBSNews.com
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