Fox News Channel offers its audiences in-depth news reporting, along with opinion and analysis encompassing the principles of free people, free markets and diversity of thought, as an alternative to the left-of-center offerings of the news marketplace.
The Department of Education will begin garnishing wages of those with defaulted federal student loans starting in January. The Trump administration announced in May that it would resume collections on defaulted federal student loans — including wage garnishments and seizure of Social Security benefits — for the first time since 2020.
In March 2020 at the onset of the COVID-19 pandemic, the government paused referring federal student loans to collections. Now, the Trump administration has said that it will introduce garnishing wages in early January after providing student and parent borrowers ample heads up to repay their debts. Garnishing wages means that the U.S. government is authorized to order employers to withhold up to 15% of their employees' wages after taxes, which would contribute toward paying off their student loans. 'We expect the first notices to be sent to approximately 1,000 defaulted borrowers the week of January 7, and the notices will increase in scale on a month-to-month basis,' a Department of Education spokesperson told Fox News Digital. 'All collections activities are required under the Higher Education Act of 1965 and Debt Collection Improvement Act of 1996 and conducted only after student and parent borrowers have been provided sufficient notice and opportunity to repay their loans.' TRUMP ADMINISTRATION RELEASES OVER $6B IN FROZEN EDUCATION FUNDS TO THE STATES Meanwhile, Democrats have sought to stop the Trump administration from garnishing wages for student loan borrowers. After the Trump administration announced in May it would resume collections, Rep. Ayanna Pressley, D-Mass., and Sens. Elizabeth Warren, D-Mass., and Cory Booker, D-N.J., introduced legislation that would suspend the Department of Education’s ability to garnish wages, tax refunds, Social Security checks and other benefits. TRUMP STILL NEEDS CONGRESS' HELP WITH PLAN TO ABOLISH EDUCATION DEPARTMENT 'No one should have their hard-earned wages, tax refunds, and Social Security checks seized by Donald Trump—and our bill would ensure they do not,' Pressley said in a statement in May. 'The Trump Administration should not be in the business of picking the pockets of our most vulnerable borrowers, gutting the Department of Education or exacerbating the student debt crisis.' In May, the Trump administration said that approximately 43 million student borrowers had federal student loan debt, which translated to an outstanding federal student loan balance of $1.6 trillion. CLICK HERE TO DOWNLOAD THE FOX NEWS APP Meanwhile, President Donald Trump has sought to overhaul and eliminate the Department of Education and shift its functions to other agencies. Should Trump successfully dissolve the Department of Education, he's indicated that an agency such as the Department of the Treasury could oversee student loans instead. Fox News’ Patrick Ward contributed to this report.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
These college journalists from Philly-area schools are working to support each other and seek funding for their workThe Philadelphia Student Press Association, founded by Haverford College student Jackson Juzang, is seeking funding to help support student journalism.
Read more »
What to know about Trump’s new student loan forgiveness program, RAPRAP will replace existing income-driven repayment student loan forgiveness programs.
Read more »
Trump set to announce new battleship that he’s considered calling ‘Trump class’President Donald Trump is set to announce a new type of battleship Monday that he has considered calling the “Trump class,” a person familiar with the matter said, as he works to update a US Naval fleet he’s said before is unattractive and rusty.
Read more »
Trump announces new ‘Trump-class’ battleships for US Navy’s ‘golden fleet’President Donald Trump announced plans for the construction of a new line of battleships for the United States Navy on Monday, which the president claims will be 'one hundred times more powerful' than any warship ever built.
Read more »
Trump unveils plan for 'Trump-class' battleships to boost US sea powerPresident Donald Trump announced on Monday plans to build a new 'Trump-class' of battleships — larger, faster and '100 times more powerful' than any before — aimed at cementing U.S. naval dominance.
Read more »
Student Loan Update: Trump Admin to Garnish Wages—What Borrowers Should KnowThe Education Department suspended wage collections on defaulted student loans during the coronavirus pandemic.
Read more »