(The Center Square) – The federal government will come after defaulted student loan borrowers’ tax refunds, federal pension and wages if those borrowers don’t find a way to start paying again, the White House said Tuesday.
“The Trump administration has announced we will put an end to Biden’s illegal student loan bailout attempts,” White House Press Secretary Karoline Leavitt told reporters Tuesday, following a Monday announcement from the Department of Education.
“No student loan has been referred to collections since March of 2020,” Leavitt continued.
Interest on federal students loans was suspended during the COVID-19 pandemic, resuming in September 2023.
In June 2023, the Supreme Court ruled in Biden v. Nebraska that the administration could not cancel up to $20,000 in student loan debt for eligible borrowers under the Higher Education Relief Opportunities for Students Act of 2003. Five justices joined Bush appointee Chief Justice John Roberts in the majority opinion, where Roberts argued that the HEROES Act did not clearly authorize the Department of Education to waive student loan repayment.
The administration was able to work around the Supreme Court’s ruling and still ultimately ended up forgiving over $180 billion in student loans through targeted debt relief programs like the Public Service Loan Forgiveness program and other avenues, according to reports.
Now, the Trump administration is putting its foot down, according to Leavitt. Borrowers have just a few weeks to resume paying on their student loans, as the Education department has said it plans to start involuntary collections again on May 5.
“Borrowers will now be clearly expected to repay their loans and those who default on their loan obligations will face involuntary collections,” Leavitt said.
With the national debt exceeding $36 trillion and “fewer than four out of 10 borrowers” actively repaying their student loans, according to Leavitt, the administration believes current practice isn’t sustainable.
“Debt cannot be wiped away; it just ends up getting transferred to others,” Leavitt said. “Why should Americans who didn’t go to college or went to college and responsibly paid back their loans, pay for the student loans of other Americans? The Trump administration will never force taxpayers to pay student loan debts that don’t belong to them.”
Over 40 million borrowers owe more than $1.6 trillion in student loan debt today, according to the Department of Education.
