Trump administration to start seizing pay of defaulted student loan borrowers in January

    https://www.cnbc.com/2025/12/23/student-loan-borrowers-wage-garnishment.html

    Posted by Several_Print4633

    19 Comments

    1. He really dislikes educated people. You’d think with the amount of times he’s filled bankruptcy he’d change it so people can discharge them like he’s done with so many things.

    2. Dry-Mousse-6172 on

      One of the first things fascists do is decapitate the educated from being able to lead any resistance. See if any of these sound familar to current regime.

      When fascist regimes take power, they typically view the “educated class”—intellectuals, professors, and scientists—as a dual-edged sword. While they need technical expertise to run a state and military, they deeply fear the critical thinking that education fosters.

      History shows a consistent pattern of how these regimes “neutralize” the educated:

      1. The Ideological Purge

      The first step is often a “cleansing” of educational institutions.
      * Mass Dismissals: Faculty members who are Jewish, ethnic minorities, or “politically unreliable” (socialists, liberals, or even cautious moderates) are fired.

      * Loyalty Oaths: Remaining educators are often forced to sign oaths of allegiance to the party or the leader. In Fascist Italy, professors had to swear loyalty to the regime; those who refused lost their jobs and were often ostracized.

      * Replacement with “Partisans”: Academic positions are filled by party loyalists, often individuals with inferior credentials whose primary qualification is their devotion to the ideology.

      2. The Narrowing of Knowledge

      Fascism replaces broad intellectual inquiry with narrow, state-approved dogma.

      * Book Burnings: One of the most iconic images of fascism is the public burning of “subversive” literature—anything from psychology and modern philosophy to literature by “degenerate” authors.

      * Pseudoscience: Regimes often promote “alternative” sciences that fit their narrative (e.g., the Nazis’ promotion of Deutsche Physik to replace “Jewish” physics like Einstein’s theory of relativity).

      * Curriculum Rewrite: History is rewritten to emphasize national glory and victimhood, while critical analysis of the government is labeled as treason.

      3. Co-option vs. Liquidations

      The regime presents educated people with a brutal choice: Comply or Disappear.

      * The “Brain Drain”: Many of the most brilliant minds flee the country. Pre-WWII Germany lost luminaries like Albert Einstein and Hannah Arendt during this period.

      * Exile and Imprisonment: For those who stay and dissent, the state uses “re-education” camps, internal exile, or execution. In the “White Terror” of Francoist Spain, thousands of teachers and academics were among those executed to “purify” the nation.

      * The “Golden Cage”: Those who comply are given prestige and funding, provided their work serves the state’s industrial or military goals.

      4. Anti-Intellectualism as Populism

      Fascist leaders often frame the “educated elite” as enemies of the “real people.” They characterize intellectuals as “out of touch,” “effeminate,” or “parasitic.” By devaluing expertise, the regime ensures that the public relies solely on the leader’s “intuition” and propaganda rather than facts or data.

    3. I again am less concerned about him. I am way more concerned about the people that voted for him despite all the red flags being so out in the open.

    4. TACO.  He’ll walk back this “plan” just in the nick of time, as always.  I’m willing to bet, with my own money not my taxpayers money, that no one is going to see a garnishment on their payroll for defaulted student loans in January.  

    5. Long-Time-lurker-1 on

      If i had any debts that i already couldn’t pay I’m sure taking away my entire paycheque would solve the issue and not instead just say. Well fuck it i might as well not even bother working. Increasing the joblessness and homeless statistics in one go.

    6. Consistent-Web-351 on

      The irony coming from the person who never paid any of his contractors is ridiculous.

      He’s the worst president that won’t go down in history currently

    7. KookyPurchase5622 on

      What else is supposed to be done with loan defaults? I believe this is what happens when a bank sends you to collections. They start seizing your pay. The news is just getting some views out of adding Trump’s name here.

    8. I would be making payments if the Supreme Court hadn’t forced my payment plan into forbearance just because Trump thinks education is woke. So for now I pay nothing.

    9. ImaginaryHospital306 on

      This is not something specific to the Administration. Wage garnishment is in the loan covenants the borrowers signed and is allowed by law since the Debt Collection Improvement Act of 1996. More people need to understand that federal student loans are TAXPAYER FUNDED. Perhaps then they’d understand how subsidized student loans are the root cause of this whole mess.

    10. I still have to change plans (which I’ll probably be doing the rest of my life because I don’t make enough to pay these off now) and hopefully not default but it is what it is. This society wants us to have a leased vehicle, rented home, and everything else is subscription based. There’s truth to the idea of “own nothing and be happy”. We’re seeing it slowly play out each year. I dread defaulting but it’s not my fault my degree can become useless once some billionaire decides to get a cheaper labor system set up until AI can fully take over. So I get what jobs I can get. It really sucks trying to start over in your 30s. I will honor my debt because I chose this but I hope they could be reasonable about it so I don’t end up homeless

    11. All the progressives who told me Kamala was a war criminal and Biden did nothing for student debt should be ashamed. Kamala pointed out everything that would happen. But she wasn’t perfect so 🤷‍♀️. 45% of Americans thought both were equally bad and didn’t vote. Many of them the very people affected now. If people keep doing purity voting, this will keep happening.

    12. I don’t agree with Ron DeSantis on anything, but I thought he was correct that colleges should be required to co-sign student loans and should be on the hook if students can’t pay back the loans. That would essentially force colleges to cut wasteful spending.

      I would prefer completely getting rid of the federal student loan program since it causes tuition to jack up, but DeSantis’s solution is the second best.

    13. Perhaps if they named a forgiveness act after Trump, he’d approve the program. Same for the ACA-just rename it Trumpcare and he’d sign it today. All he cares about is having his name on everything.

    14. Soggy-Bottom_Boy on

      “Sir, I voted for you three times but this is really wrong because it will hurt me. I went to college but dropped out and still have student loans that I can’t pay. I still support everything else that you are doing. Please help me Sir.”

    15. This is effectively a tax on lower income workers. The knock on effects will be interesting. Expect business like grocery stores etc to take a hit and a slight hit at restaurants/bars. I also would expect default rate for things like auto to increase from this.

    16. Debts that can’t be paid won’t be paid. Austerity will drag the economy just like it drags the economy of developing nations owing foreign currency.

      Goes to the crux of the problem: did creditors make bad loans or did borrowers take bad loans? Is it ok to sacrifice the broader economy to save creditors?

    17. Most people struggling with student debt are not young, they are over 40. And their amount of debt is not that high, it’s about 20k. That’s who Biden was trying to help with 10k in debt forgiveness, it would have made their remaining debt manageable.

      The people who imply that the people asking for student debt relief are spoiled young people who refuse to be responsible adults are lying. We can’t get anywhere as long as this lie persists.

    18. The morality play going on here is really astounding. These are loans like any others. Sometimes they go bad and both parties need to find a way to move forward. That is why we have so many different ways of handling bankruptcy. Not only that, but the lenders hold the cards here. In most cases they had plenty of analysis tools telling them that the loans were going to run into trouble and likely not be paid back on time. Instead of balancing the game everything has been assigned to them. Manage to sell a starry eyed young person a loan that doesn’t make sense? Good job, now the government will apply the thumb screws. As if young people needed more challenges and barriers.

      The sooner we come to grips with the reality that these often bogus loans are not going to be repaid the better off we will be as a nation. Telling the financial set that any crappy deal they make with young people will be backed by the government was a silly mistake that we need to back down from. Trying to make bad loans into good ones by screwing over young people is a mistake that will ultimately cost much more money than it brings in.

    19. In a country of great wealth, there was a **Mogul** named Trump who built towers and casinos. He had borrowed ten billion dollars from the world’s largest banks to fund his ventures. But when his businesses failed to make a profit, he went before the **High Court of Bankruptcy**. He told the Judge, “The laws of this land allow me to restructure. If you forgive these billions, I can keep my name on the buildings and continue my work.”

      The Judge, seeing that the Mogul was a man of high status and that the laws favored the “fresh start” for corporations, struck his gavel. He wiped away the ten billion dollars, allowing the Mogul to walk away with his mansions and private jets untouched. The Mogul went out and told the press, “I used the laws of the country to my advantage. It was a great business deal.”

      But as the Mogul left the courthouse, he saw a college **Graduate** who had borrowed money to become a teacher. This Graduate had hit hard times and defaulted on a **thirty-thousand-dollar** student loan. Because of the Mogul’s new policies in the capital, the government had just sent the Graduate a notice: they were going to **garnish her paycheck**, taking the money directly from her wages before she could pay for rent or groceries.

      The Graduate recognized the Mogul and fell at his feet, pleading, “Sir, you just had ten billion dollars wiped clean by the court. I only owe a fraction of that, but the law won’t let me discharge my debt in bankruptcy like you did yours. My wages are being seized, and I cannot feed my children. Please, use your influence to show us the same mercy the banks showed you!”

      But the Mogul was unmoved. He replied, “If you take out a loan, you must pay it back. It’s a matter of principle. The law is the law.” He then called his officials and ordered them to speed up the garnishments, saying, “We must protect the taxpayers from people who don’t meet their obligations.”

      When the other citizens saw this, they were deeply troubled. They knew the Mogul had benefited from the ultimate “clean slate,” yet he was using the power of the state to “pick the pockets” of those who had far less.

      Do not offend the majority, it will come back to bite you in the a$$.

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