Starting in early June, thousands of federal benefits for student loan borrowers in default will be garnished as the Trump administration resumes collections halted during the pandemic. Education Secretary Linda McMahon emphasized the importance of accountability in student loans, stating that failing to repay loans affects others as well. Currently, about 5.3 million borrowers are in default, with alarming increases in delinquency rates, indicating many could soon face further consequences, such as administrative wage garnishment from their earnings.
The first monthly benefit checks subject to offset are those scheduled for early June, impacting thousands of defaulted student-loan borrowers who will see federal benefits garnished.
Debt doesn't go away; it gets transferred to others, highlighting the necessity of restoring accountability in the student-loan system after a lengthy pause on collections.
The Trump administration restarted collections on defaulted student loans starting May 5, lifting protections that were initially put in place during the pandemic.
The number of borrowers in serious delinquency surged dramatically from 0.8% in 2024 to 8.04% in 2025, indicating a significant risk of default.
Collection
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