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Posted on 01/16/2026 1:33:46 PM PST by Oldeconomybuyer
The Education Department announced on Friday that it will delay the implementation of wage garnishment and other involuntary collection efforts affecting defaulted student loan borrowers.
The department said the delay affects involuntary collections on federal student loans through wage garnishments and the Treasury Offset Program, which is used to seize some or all of borrowers’ payments from the government, including tax refunds and Social Security benefits.
“The temporary delay will enable the Department to implement major student loan repayment reforms under the Working Families Tax Cuts Act...to give borrowers more options to repay their loans,” the department said in the announcement.
The Working Families Tax Cut Act is another name for President Donald Trump’s “big beautiful bill.” Among other provisions, the legislation introduced a new repayment plan and more ways to get loans out of default.
The announcement comes days after Secretary of Education Linda McMahon told reporters in Rhode Island that garnishments would be paused.
More than 42 million Americans hold student loans, and the outstanding debt exceeds $1.6 trillion, according to the Congressional Research Service.
(Excerpt) Read more at cnbc.com ...
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Or you could throw around some viruses, start some urban riots,.......oh, wait. Never mind.
The young people who hate Trump will continue to hate Trump no matter how he approaches student loans.
Just turn it over to a collection agency.
Maybe the universities should be required to pay them out of there endowments? Universities should have some responsibility for encouraging degrees in areas of study with no marketable possibilities and substantial debt. What a way to ruin a life!
To get votes, Joe Biden pandered to the student loan voting bloc but was informed his shift to the taxpayers to “forgive” the loans was unconstitutional.
Now a firm line in the sand was drawn to make them repay what they agreed in writing to repay——and the line was obliterated by a foot in the sand.
Sort of like a ping pong match.
That would be a hard case to make “ex post facto”. Particularly true since these were adults signing up for nonsense no ROI degree programs.
These nonsense degree programs exist to increase the number of minorities and women in the faculty lounges. Private schools can follow this egregious approach, its their money! The state schools particularly the land grant (See Morill Act) schools have been allowed to play “follow the leader” on this by their respective state legislatures. These legislatures have allowed the land grant schools to deviate widely from their mission. Nowadays the primary mission seems to sports entertainment. Give legislators good seats and he\she is happy. They think they’ve done a great job.
As a great meme posted-
Anyone that lends $100K+ to an 18yo with no experience and no skills, to pursue a path with no payoff, deserves to lose every dime.
Lending to a sharp, dedicated kid with documented academic talent pursuing an engineering degree? Maybe.
To a hard working kid that’s been laboring away in a local auto garage gaining skills and experience, who wants to undertake Automotive Tech? Maybe.
There’s lots of Privata Lenders who would like to give ‘em a shot, for a modest claim on future earnings (payback).
$42 MILLION LOAN HOLDERS
$1.6 TRILLION
UNACCEPTABLE
Why?
That’s something that exists for *private* student loans... and just like defaulted credit cards or car loans - “turning it over” to a collection agency means pennies on the dollar.
*Federal* student loans need no such nonsense.
Wage garnishment, tax refund seizure, etc — there is ZERO reason to do this. Collection of the loan amount for *federal* student loans requires nothing of the sort. The full amount due can - and should be - recovered.
ROTC and other methods (like working and maybe you don’t need to go to the Big Name School) exist - much as I understand prices have gotten bigger, that was how I escaped student loans.
My kids *did* have student loans - though we could have certainly paid tuition straight-away, wife and I both agreed teaching responsibility was important, so while we paid some hefty tuition bills? Both kids who went to college had loans (youngest isn’t interested in college, bully for him - but it’s his choice and we’ve been discussing alternatives for money we’ve saved to fund college).
It never came to pass, but I suppose if push came to shove? If either older kid had trended towards default? Maybe we’d have helped, maybe not. I honestly don’t know (and glad it never came up).
Still, personal responsibility needs to make a comeback.
Don’t get me wrong - I support wholeheartedly eliminating the DOE and believe me, tuition prices will come down as the federal free money trough goes away.
But - grow up. I don’t care if you’re 18 — you signed a promissory note. You owe that. Pay it.
The DoEd should have been completely 100% abolished by now.
100%.
Though, for college tuition purposes? Just changing the “anybody/everybody/max” on federally backed would help.
More than anything else? What most leftists don’t grasp is the single biggest driver in higher tuition is the free money the Feds make available.
Like I said above - I don’t have a TON of sympathy for people who take loans and don’t expect to repay them.
However, even in increments — I’ll say this:
One thing I *do* think colleges should be required to do?
I know this from dealing tuition and aid packages for my own kids — but colleges really put the screw to you on what economics call price elasticity and opportunity costs.
What I mean by that — and most students and parents know this, even if they don’t?
They’ll offer you, say, a 40% tuition grant for freshman tuition. Then - even if your family income doesn’t change? That grant becomes 30, even 20% as a sophomore or thereafter.
Society doesn’t move in lurches — and despite my predilections? OK, I do think there’s a place for some manner of financials for allowing deserving and qualified kids to go to college.
One maddeningly simple thing I’d have done long ago (and yeah, this goes back to when I was paying tuition bills)?
Require ANY college that participates in federal student aid programs to lay out a complete - freshman to graduation - financial course.
I often - mostly - (hey, just look at my poster name!) don’t like artificial constraints! But -
To be eligible for ANY sort of federal aid - loans, subsidies, etc.... Colleges should be required to:
1) Not go year-to-year, but provide a complete tuition schema... not unlike a mortgage or other loan. Here’s the cost for a “standard” course of study for the degree.
2) Make all financial aid packages likewise cover that full course.
Sure, things happen on the margins. In rare cases, people get rich. In some cases? Allow for appeals - an earner/parent passes, things happen, etc.
But - especially since colleges love to maintain the idea that “it’s not about the money”?
FORCE them to lock in a complete menu of tuition + aid for a standard course of study. You fail classes or stick around in a Chris Farley sense? That’s on the student. But — it would fix an awful lot if colleges couldn’t play games.
You apply to colleges and you apply for aid? Here’s the 2 or 4 years term covering tuition and how the various elements of aid package spool out.
Why? It’s because the money is on the way to being gone. I’m ok with contracting collections out. Whack them with a collection agency that plays hardball. They’ll remember it.
“The temporary delay will enable the Department to implement major student loan repayment reforms under the Working Families Tax Cuts Act...to give borrowers more options to repay their loans,” the department said in the announcement.
I can live with that...as long as ‘We The People’ get that money back and apply it DIRECTLY to our National Debt.
ROFLMAO! I crack myself UP!
Just pay up, ya Deadbeats!!
OK… Let me give you an idea of how bad Joe Tato fucked up all student loans during “COVID”. The back and forth was brutal
I had all three student loans for my kid on automatic payments. All of a sudden, they WOULD NOT take ANY payments. Then, the loans got “sold”SEVERAL times and those automatic payments stopped until I re-established auto draft with the “new” lender, who only sent email (yeah I’m gonna answer an email for demand of payment from someone I don’t know 🤦🏻♀️) zero hard copy paperwork sent. . One of those loans is now in default and it should not be. I did my part
I was in residential/commercial lending for almost 35 years. We sold loans all the time and sent information to the borrowers when their loans were sold. The automatic draft information was also sent to the new lender and it was seamless. The Democrats fucked up so many people with student loans during Covid and their credit is shot. By design
We had two “parent loans” and one kid loan. Miraculously, only the kids loan didn’t “roll over” to the new lender and then the collection agency came in barking. 🤔
Same Old S**T - Different Boss.....
The Who - “Won’t Get Fooled Again”
https://www.youtube.com/watch?v=SHhrZgojY1Q
What happens when the student loan is sold to a private company in the middle of your repayment period? That happened to my daughter and my husband when he was getting his MBA. Their interest rates doubled and now they’re not eligible for a different repayment plan because their loans are now owed by a private bank. They were given no notification for this change and have no recourse, which is outrageous.
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