SUBSCRIBE

Trump admin to seize wages of up to 5 million defaulted student loan holders

FILE PHOTO: U.S. Secretary of Education Linda McMahon smiles during the signing event for an executive order to shut down the Department of Education next to U.S. President Donald Trump, in the East Room at the White House in Washington, D.C., U.S., March 20, 2025. REUTERS/Carlos Barria/File Photo
David Edwards
December 23, 2025

President Donald Trump's administration will reportedly begin seizing wages from up to 5 million student loan borrowers who are behind on their payments.

On Tuesday, the U.S. Department of Education confirmed the plan to CNBC.

Borrowers' paychecks have not been at risk since the COVID-19 pandemic. The education department will begin sending out notices to around 1,000 defaulted student loan borrowers during the week of Jan. 7, CNBC reported.

The department has the power to seize up to 15% of the paychecks of defaulted borrowers.

During the first year of Trump's second term, job losses have soared, with more than 1.1 million jobs lost through November.

Related Post