Think about waiting until your next paycheck just to have enough money to purchase gas. That’s the existence for Jason Collier, a Virginia special education teacher. He’s 46, has two kids, and is still recovering from a cancer diagnosis. Now, he’s bracing himself for another hit — the U.S. Department of Education could soon deduct 15% of his paychecks because he has student loans outstanding.
“Money is tight when you’re a teacher,” Jason told me. If wage garnishment kicks in, unexpected expenses — like a car repair — might be too much. “It would just be more of a pinch,” he said.
Collections Are Back, and So Are the Consequences
After more than five years of paused collections, federal student loan debt recovery has restarted. That means if you’re in default, the government can now take your tax refund, a portion of your paycheck, or even part of your Social Security check.
This return to aggressive collections came in April under the Trump administration. It marks a sharp reversal from the Biden-era focus on providing relief to struggling borrowers during the pandemic. According to the Education Department, more than 5 million borrowers are already in default, and that number could double in the coming months.
As U.S. Secretary of Education Linda McMahon put it, “Borrowers should pay back the debts they take on.” But for many, it’s not about refusing to pay — it’s about being unable to.
Living on the Edge
The total student loan debt in the United States alone is more than $1.6 trillion. In case you default, the government takes as much as 15% of your disposable income. That’s a hard hit, especially when food, rent, and electricity are already draining the life out of your budget.
Nancy Nierman, of the Education Debt Consumer Assistance Program, warns that garnishments can “compel individuals to make choices among vital expenditures.”
Former Undersecretary of Education James Kvaal agrees. “The consequences are punitive and sometimes catastrophic,” he said. Those in default often honestly can’t make repayments.
A Retiree Who Can’t Go Home
Marceline Paul, 68, is one of those people. She retired during the pandemic to care for her mother and now lives on about $2,600 a month in Social Security. She borrowed to help her daughter go to school, and now the government might reduce her benefits by up to 15%.
“When I saw that email, it made me sick to my stomach,” she told me. She’s already living on a tight budget. The garnishment could mean skipping home repairs, travel, and even basic needs. Going back to her home country of Trinidad, something she’s dreamed of, will be out of reach.
The System Is Still in Chaos
To add insult to injury, the student loan system has been in disarray. Borrowers signed up for Biden’s SAVE repayment plan, only to have it stopped by lawsuits. Now they’re being told to switch plans — and pay more every month as a result.
If you’re feeling overwhelmed, you’re not alone. The return of student loan collections is hitting borrowers hard, and for many, it’s not just about money — it’s about survival.
