Trump Administration Resumes Student Loan Garnishments, Straining Borrowers

BROCKPORT, New York — The Trump administration resumed federal student loan garnishments on Monday, impacting thousands of borrowers already struggling financially. The Department of Education is now authorized to garnish wages and Social Security payments for those in default, drawing criticism from advocates for working-class families.

With the student loan payment pause during the COVID-19 pandemic coming to an end, many borrowers face the harsh reality of resumed payments without a clear path to relief. Sarah Bundy, a public transit coordinator and a lifelong student debtor, described the fear of financial strain that comes with this policy change.

“As a 54-year-old who has been paying off more than $60,000 in loans since 1996, I know the terror of having my income garnished because of a debt I can’t afford,” Bundy said. She highlighted the struggle of working families that are caught in a cycle of debt while needing stability in their lives.

Bundy currently makes $17.50 an hour and, along with her husband, has a household income of less than $60,000. Despite working various jobs to support her family, including as a nurse’s aide, she reported having less than $2,000 saved for retirement.

With nearly 25% of all student loan borrowers in default, the consequences of resumed garnishments cannot be understated. Families like Bundy’s are already stretched thin, juggling expenses for food, housing, and childcare while facing potential garnishment of their wages.

Furthermore, critics argue that the administration’s forbearance policies are inadequate. Bundy mentioned the proposed “Repayment Assistance Plan” from congressional Republicans, which many believe will further exploit borrowers in distress.

“Resuming loan garnishments will be a disaster for countless families. It will push many back into a cycle of poverty,” said Bundy. “Changing the rules only benefits Wall Street while hurting working-class Americans trying to simply get an education and earn a living.”

Bundy recounted the fulfilling yet low-paying jobs she has held, emphasizing the difficulty in making loan payments even while working hard to care for her community’s most vulnerable. The recent garnishment policies are a step backward for working families striving for a better life.

With the Trump administration’s budget favoring tax breaks for the wealthy, Bundy believes the working class must rally for change. “Struggling American families need more support to go to college — not less,” she said. “The solution lies in providing free college for all, not punishing those who seek education.”

The fear of looming financial crises weighs heavily on many borrowers, who are now preparing for the impact of these new policies as they navigate their already challenging situations.