Trump admin will seize pay of defaulted student loan borrowers starting in January

The U.S. Education Department will begin garnishing wages of student loan borrowers in default starting in January. This marks the first time since the pandemic that collections will resume. The government has the power to seize wages, tax refunds, and Social Security benefits, taking up to 15% of a borrower's after-tax income. Over 5 million borrowers are currently in default, with that number potentially rising to around 10 million. There are more than 42 million Americans holding student loans, totaling over $1.6 trillion in debt. This is a developing news story.