President Donald Trump and his administration are again reminding us that student loan “debt cannot be wiped away” as they plan to seize wages, pensions, and tax refunds to settle debts owed.
RELATED: Biden Administration To Cancel $5 Billion More In Student Loan Debt For Over 80,000 Borrowers
While former President Joe Biden and former Vice President Kamala Harris attempted to help hundreds of thousands of student loan borrowers by seeking to cancel billions in student loan debt, Donald Trump and his administration are leaving borrowers out to hang.
On Monday (April 21), the Department of Education, under the Donald Trump administration, announced that as of May 5, 2025 it will resume collections on defaulted federal student loans for the first time since 2020. At the time, former President Joe Biden placed a freeze on collections due to the coronavirus (COVID-19) pandemic.
Donald Trump Administration Refuses To Let Taxpayers Pay For Delinquent Student Loan Debt
On Tuesday (April 22), White House Press Secretary Karoline Leavitt spoke more on the announcement. She told reporters during her weekly briefing that the Trump administration will go after borrowers who don’t repay the loans and instead place their burden on other taxpayers. She stated, “The government can and will collect defaulted federal student loan debt by withholding money from borrowers, tax refunds, federal pensions, and even their wages.”
Leavitt also said that the student loan portfolio is nearly $1.6 trillion and that there are less than four out of ten borrowers up to date on their loan repayment. Altogether, there are four million borrowers currently in the late-stage delinquency stage on their payments. This means that they are between 91 days and 180 days late on payments.
RELATED: Federal Judge Approves Biden Administration’s Plan For Student Loan Forgiveness
Leavitt continued to explain:
“This is unsustainable, unfair, and a huge liability for American taxpayers. Debt cannot be wiped away. It just ends up getting transferred to others. So 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…. We must get our fiscal house in order and restore common sense to our country. f you take out a loan, you have to pay it back. It’s very simple. President Trump will not kick the can down the road anymore.”
Secretary of Education Linda McMahon Slams Joe Biden Administration Over Student Loan Debt Forgiveness Attempts
Meanwhile, the Department of Education continued to warn that in a few months, there could be nearly 10 million student loan borrowers in default. Secretary of Education Linda McMahon spoke on the Biden administration’s attempt to bail out millions of student loan borrowers — which ultimately got shot down by lawmakers. She said:
“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies. The Biden Administration misled borrowers: the executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear. Hundreds of billions have already been transferred to taxpayers.”
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