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Trump administration to garnish wages for defaulted student loans

24 December 2025 at 03:41
The U.S. Education Department said it will start garnishing wages from student borrowers in default. (Catherine Lane/Getty Images)

The U.S. Education Department said it will start garnishing wages from student borrowers in default. (Catherine Lane/Getty Images)

WASHINGTON — President Donald Trump’s administration will start garnishing the wages of student loan borrowers in default beginning early next year, the U.S. Education Department said Tuesday. 

In an email, the department said it expects the first notices to be sent to roughly 1,000 borrowers in default the first full week of January and that the number of notices would increase each month. Wages could be garnished as early as 30 days after borrowers receive notice.

The agency noted that collections activities would be conducted only after borrowers were given sufficient notice and the opportunity to pay back their loans.

Persis Yu, deputy executive director and managing counsel for the advocacy group Protect Borrowers, blasted the decision as “cruel, unnecessary, and irresponsible” in a Tuesday statement. 

“As millions of borrowers sit on the precipice of default, this Administration is using its self-inflicted limited resources to seize borrowers’ wages instead of defending borrowers’ right to affordable payments,” Yu added. 

The agency resumed collections for defaulted federal student loans in May, following a pause that started during the early weeks of the COVID-19 pandemic. 

As a consequence of defaulting on one’s student loans, a borrower can have their wages garnished, and the “loan holder can order your employer to withhold up to 15% of your disposable pay to collect your defaulted debt” without being taken to court, according to Federal Student Aid, an office of the Education Department. 

With wage garnishment, borrowers have the right to “be sent a notice that explains ED’s intention to garnish your wages in 30 days, the nature and amount of your debt, your opportunity to inspect and copy records relating to your debt, your right to object to garnishment, and your option to avoid garnishment by voluntary repayments,” according to FSA.

US Education Department civil rights staff returning to work to tackle complaint backlog

8 December 2025 at 21:21
The Lyndon Baines Johnson Department of Education Building on Nov. 25, 2024. (Photo by Shauneen Miranda/States Newsroom)

The Lyndon Baines Johnson Department of Education Building on Nov. 25, 2024. (Photo by Shauneen Miranda/States Newsroom)

WASHINGTON — The U.S. Education Department is bringing back hundreds of employees in its Office for Civil Rights who were placed on paid administrative leave earlier this year, according to a Dec. 5 email to those employees obtained by States Newsroom. 

The effort came as the Office for Civil Rights, or OCR — which is tasked with investigating civil rights complaints from students and families — has seen a growth in its massive backlog of those complaints. 

A spokesperson for the department confirmed the effort and said the staffers would resume work starting Dec. 15.

Dismantling of department

More than 200 OCR employees targeted as part of a larger Reduction in Force, or RIF, effort at the Education Department in March were placed on administrative leave amid legal challenges against President Donald Trump’s administration.

Since taking office in January, Trump has sought to dismantle the 46-year-old agency in his quest to move education “back to the states.” He tapped Education Secretary Linda McMahon to fulfill that mission. 

“The Department will continue to appeal the persistent and unceasing litigation disputes concerning the Reductions in Force, but in the meantime, it will utilize all employees currently being compensated by American taxpayers,” Julie Hartman, a spokesperson for the department, said in a statement shared with States Newsroom.

In the email to employees, the department said “it is important to refocus OCR’s work and utilize all OCR staff to prioritize OCR’s existing complaint caseload.” 

“In order for OCR to pursue its mission with all available resources, all those individuals currently being compensated by the Department need to meet their employee performance expectations and contribute to the enforcement of existing civil rights complaints,” the email notes.

The agency did not respond to States Newsroom’s separate requests to confirm the text of the email. It is unclear how many of the more than 200 will return, or if some have taken other jobs.

Union says millions of dollars wasted

Rachel Gittleman, president of American Federation of Government Employees Local 252, which represents Education Department workers, said that “for more than nine months, hundreds of employees at the Office for Civil Rights (OCR) have been sidelined from the critical work of protecting our nation’s most vulnerable students and families.”

“Instead of following court orders and federal law, the Trump Administration chose to keep these civil rights professionals on paid administrative leave — a decision that has already wasted more than $40 million in taxpayer funds — rather than letting them do their jobs,” she said. 

Gittleman pointed to “severe” consequences, noting that “by blocking OCR staff from doing their jobs, Department leadership allowed a massive backlog of civil rights complaints to grow, and now expects these same employees to clean up a crisis entirely of the Department’s own making.” 

Trump’s Education Department transfers illegal, US Senate Dems say

4 December 2025 at 19:41
Washington state Democratic Sen. Patty Murray speaks to reporters at the U.S. Capitol on Feb. 25, 2025. Senate Democratic Leader Chuck Schumer and Sen. Tammy Baldwin, Democrat of Wisconsin, stand behind her. (Photo by Kayla Bartkowski/Getty Images)

Washington state Democratic Sen. Patty Murray speaks to reporters at the U.S. Capitol on Feb. 25, 2025. Senate Democratic Leader Chuck Schumer and Sen. Tammy Baldwin, Democrat of Wisconsin, stand behind her. (Photo by Kayla Bartkowski/Getty Images)

WASHINGTON — More than 30 members of the U.S. Senate Democratic caucus slammed the U.S. Education Department’s plans to shift several responsibilities to other Cabinet-level agencies in a letter to Secretary Linda McMahon. 

The senators blasted the move as “outrageous,” and “illegal,” saying it circumvented appropriations law — which is how Congress exercises its power of the purse — and would “jeopardize the funding and support that tens of millions of students, teachers, and families across the country rely on.”

Sens. Patty Murray of Washington state, Tammy Baldwin of Wisconsin, Vermont independent Sen. Bernie Sanders and Senate Minority Leader Chuck Schumer led the letter, dated Wednesday. 

Murray is the top Democrat on the Senate Appropriations Committee, Baldwin is the top Democrat on the Appropriations subcommittee overseeing Education Department funding and Sanders is the ranking member of the Senate Committee on Health, Education, Labor and Pensions.

“This is the latest example of this administration’s complete lack of regard for our laws and its failure to provide the certainty, clarity, and stability that students and schools deserve when it comes to the federal government’s approach and commitment to properly implementing federal education laws and appropriations,” the senators wrote. 

Department dismantling

The Education Department outlined six agreements signed with the departments of Labor, Interior, Health and Human Services and State. The move drew swift backlash from Democratic officials, labor unions and advocacy groups. 

The plan, announced Nov. 18, is part of a larger effort from President Donald Trump’s administration to dismantle the 46-year-old Education Department as the president seeks to send education “back to the states.” Much of the funding and oversight of schools already occurs at the state and local levels.

McMahon has defended the move as an effort to cut “bureaucratic bloat.”

But the senators’ letter said the plan will “create even more bureaucracy that states, school districts, and educational institutions across America will have to expend time and resources navigating at the expense of students and families.” 

The lawmakers urged McMahon to “immediately reverse course” and focus her time and attention on “actions that actually help states, school districts and educational institutions improve educational outcomes and support for students.” 

Appropriators object

The senators also pointed out that Congress has not provided the Education Department with the authority to transfer the programs and their associated funding to other agencies. 

They noted that “appropriations law prohibits the transfer of funds to another federal agency unless expressly authorized in appropriations law, which it has not done in this case.” 

The senators also expressed concerns over the loss of expertise from the transfer of services, highlighting the Department of Labor’s greater role in managing the Education Department’s elementary and secondary education programs and higher education grant programs. 

“The Department also provides deep policy expertise to ensure programs support improved student outcomes, such as through expert guidance to colleges and universities to improve college access, retention, and completion through programs like TRIO, GEAR UP, the Postsecondary Student Success Grant Program, and others,” they wrote.

The Federal TRIO Programs include federal outreach and student services programs to help students who come from disadvantaged backgrounds, while the Gaining Early Awareness and Readiness for Undergraduate Programs, or GEAR UP, aim to prepare low-income students for college.

“Now, DOL, who lacks the necessary expertise, is tasked with managing these programs and students will suffer as a result.” 

The lawmakers also criticized the lack of detail the administration has provided about the implementation of the transfers.

“The other federal agencies that will suddenly have significant responsibilities in administering billions in education funding — have provided no information about their roles or their capacity to carry out these programs and activities,” they wrote. 

The department did not immediately respond to a request for comment Thursday. 

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