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Trump’s student loan ‘catastrophe’ looms once it’s no longer ‘politically insane’: report

The Trump administration is quietly preparing to go after the wages, tax refunds and federal benefits of millions of Americans in default on their student loans, but not until after the midterm election. Five sources told the Washington Sun that officials are readying financial penalties for the nearly 10 million borrowers in default. Three of the…

Sources (1)· Oct 19, 3:16 PM

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Secret and 'Illegal' Trump Plan to Spin Off Federal Student Aid Office Sparks OutrageThe Trump administration is reportedly planning to remove the Federal Student Aid office from the Department of Education and establish a new independent agency tasked with managing roughly $1.6 trillion in debt owed by more than 40 million borrowers. The plan, first reported by The Washington Sun on Thursday, comes as President Donald Trump works to…
Chaos engulfs Education Dept over Trump’s ‘cartoon’ student loans plan: reportThe Trump administration’s rush to spin off the Education Department’s student loan office has thrown the agency into chaos, with one official involved in the planning dismissing the effort as “basically just a cartoon,” The Washington Sun reported Thursday. Current and former officials told The Sun the department is taking a chaotic approach that is…

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Student Loans on Ballot as Trump Officials Gear Up to Garnish Wages From Defaulted Borrowers After MidtermsAs the Trump administration makes plans to task private debt collectors with going after millions of student borrowers in default on their federal loans, officials are reportedly pushing for the effort to begin after the midterm elections—as they grapple with the fact that many supporters of President Donald Trump are likely to be affected. The…
Chaos engulfs Education Dept over Trump’s ‘cartoon’ student loans plan: reportThe Trump administration’s rush to spin off the Education Department’s student loan office has thrown the agency into chaos, with one official involved in the planning dismissing the effort as “basically just a cartoon,” The Washington Sun reported Thursday. Current and former officials told The Sun the department is taking a chaotic approach that is…