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Damian Orozco

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9 months ago

Photo by Damian Orozco on January 13, 2026.

Photo by Damian Orozco on January 13, 2026.

Photo by Damian Orozco on January 13, 2026.

Photo by Damian Orozco on January 13, 2026.

Photo by Damian Orozco on January 13, 2026.

Photo by Damian Orozco on January 13, 2026.

Photo by Damian Orozco on January 13, 2026.

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Posted On: January 14th 2026, 05:17 am

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Comments (5)

joshua_k_burgess

9 months ago

joshua_k_burgess

❤

pure.frequency

9 months ago

pure.frequency

🔥🔥🔥

the_jb3

9 months ago

the_jb3

🔥🔥🔥

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9 months ago

doonie_love

😁👍🏾

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Trump Administration Reportedly Hiring Private Debt Collectors After the Midterms, and Student Loan Borrowers in Default Could Lose Their Tax Refunds and Paychecks

Blogged by: Poli Girl

The Trump administration is reportedly preparing to go after defaulted student loans with private debt collectors, and nearly 10 million borrowers could lose their tax refunds and part of their paychecks as soon as next year.

According to a report from The Washington Sun, five sources familiar with the plans say administration officials are getting ready to impose financial penalties on Americans who are in default on their federal student loans. Three of those sources said the Treasury Department is moving forward with hiring private debt collectors, possibly as soon as November.

Sources said the plans are unlikely to be announced before the midterm elections on November 3. One source put it bluntly: “It would be politically insane to do this before the midterms.”

A federal student loan goes into default after about nine months of missed payments. Once that happens, the government has two main ways to take its money back without the borrower’s permission.

The first is called an offset. The government intercepts money it was already going to send you, like your tax refund, part of your Social Security check, or tax credits such as the Earned Income Tax Credit and the Child Tax Credit.

The second is wage garnishment. The government orders your employer to take a portion of your paycheck and send it straight to the government before you ever see it.

Some officials inside the administration are reportedly pushing to start both for the current tax year, which means borrowers filing by the April 15, 2027 deadline could see their refunds taken. Sources cautioned the start date could slip again, since officials want Treasury’s new Defaulted Loans Support Center fully running first.

Last year, the White House budget office began helping the Education Department prepare to seize benefits and wages from defaulted borrowers, according to the report. Treasury officials blocked it over concerns about the economic damage of going after workers’ money.

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