Trump halts collection of defaulted federal student loan debts

by Bryan Brammer · Mar 26th, 2020 11:03 am
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Last Updated Mar 26th, 2020 at 12:41 pm

The Trump administration has stopped collecting wages, tax refunds, and Social Security benefits from Americans who have defaulted on federal student loans amid the coronavirus outbreak, according to a report published by Politico on Tuesday.

Secretary of Education Betsy DeVos has informed collection agencies to "stop calling borrowers, sending collection notices, or taking steps to seize portions of their paychecks."

The restrictions on defaulted federal student loan collections will be retroactive to March 13 and will continue "until further notice," an official within the Education Department confirmed.

DeVos reassured Americans that they will be able to depend on their tax refunds and Social Security checks during these uncertain times.

"These are difficult times for many Americans, and we don't want to do anything that will make it harder for them to make ends meet or create additional stress," a statement read. "Americans counting on their tax refund or Social Security check to make ends meet during this national emergency should receive those funds, and our actions today will make sure they do."


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