Trump Admin announces it will throw borrowers into mandatory collections. (Student Borrower Protection Center)

The Trump Administration unleashed several attacks on students, student loan borrowers, and their families this week. On Wednesday, President Trump signed a flurry of executive orders impacting students, families, and higher education. Meanwhile, at the start of this week, the Trump Administration also announced plans to start subjecting millions of struggling borrowers in default to mandatory collections. Read our statement:

Advocates Slam Trump Administration for Throwing Millions of Americans With Student Debt Into the Jaws of Government Collections Machine Move Comes as Millions of Americans Are Struggling to Navigate Unprecedented Economic Uncertainty and Record Number of Americans With Student Loan Debt Are Behind on Student Loan Bills April 21, 2025 | WASHINGTON, D.C. — Today, the Trump Administration announced plans to begin subjecting millions of Americans in default to mandatory collections, including wage garnishment, tax refund, and Social Security benefit offsets. According to the Administration’s announcement, starting on May 5, 2025, borrowers will begin receiving collection notices through the U.S. Treasury Offset Program with administrative wage garnishment expected to resume later in the summer. The decision to resume the government’s collections machine marks the first time in five years that the federal government will penalize Americans who fall behind on their student loan payments. The announcement also comes as Americans are navigating unprecedented economic uncertainty—struggling to cover the rising costs of everyday goods, dealing with the economic fallout of mass firings of more than 24,000 federal workers all while being unable to access the full suite of affordable repayment options to help better manage their student loans. Today’s announcement referenced a future “robust communication campaign” to assist borrowers, but did not provide any information about what, if any, steps the administration is taking to ensure the student loan system will meet borrowers’ needs and fulfill their statutory and contractual rights. In response, Student Borrower Protection Center (SBPC) Executive Director Mike Pierce released the following statement: “For 5 million people in default, federal law gives borrowers a way out of default and the right to make loan payments they can afford. Since February, Donald Trump and Linda McMahon have blocked these borrowers’ path out of default and are now feeding them into the maw of the government debt collection machine. This is cruel, unnecessary, and will further fan the flames of economic chaos for working families across this country.”

Read the Full Statement