The Trump administration has maintained a strong stance against non-repayment of student loan. On Tuesday, April 22, White House Press Secretary Karoline Leavitt emphasized that the government won’t let taxpayers face the burden of defaulters and actions will be taken to ensure that the amount is recovered from borrowers.
Former President Joe Biden and Vice President Kamala Harris attempted to help hundreds of thousands of borrowers by canceling billions in student loan debt collection due to the COVID-19 pandemic. However, the current government plans to roll back the relief, leaving the borrowers in a tough spot.
The Trump administration announced that from May 5, 2025 onwards, the collections on defaulted federal student loans will resume, which came to a halt in 2020. During a press briefing, Leavitt said, “The government can and will collect defaulted federal student loans debt by withholding money from borrowers, tax refunds, federal pensions, and even their wages.”
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The government made it clear that student loan debt is a personal obligation of borrowers. Leavitt emphasized that the government will no longer absorb the cost of unpaid loans. Leavitt revealed that the student loan portfolio is nearly $1.6 trillion, with less than 40% of borrowers current on payments. Almost four million borrowers are 91 days and 180 days late on payments.
Leavitt said during the briefing, “This is unsustainable, unfair, and a huge liability for American taxpayers. Debt cannot be wiped away. It just ends up getting transferred to others. So why should Americans who didn’t go to college, or went to college and responsibly paid back their loans, pay for the student loans of other Americans?”
She added, “The Trump administration will never force taxpayers to pay student loan debts that don’t belong to them…. We must get our fiscal house in order and restore common sense to our country. If you take out a loan, you have to pay it back. It’s very simple. President Trump will not kick the can down the road anymore.”
The government plans to address the problem by withholding tax refunds, pensions, and wages from borrowers who default on their student loans.
Meanwhile, Secretary of Education Linda McMahon slammed Biden administration over the decision to forgive student loan. She warned that in a few months, there will be 10 million student loan borrowers in default. She said, “American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies. The Biden Administration misled borrowers: the executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear. Hundreds of billions have already been transferred to taxpayers.”
On May 5, @usedgov will resume collections for student loans in default.
We will not allow taxpayers to take on debts that are not their own.
Please visit https://t.co/jzxyqF5Ikn to learn more about repayment options. pic.twitter.com/MdGoVd2HsS
— Secretary Linda McMahon (@EDSecMcMahon) April 23, 2025
The announcement from the White House is a big step to save taxpayers who have been bearing the cost of others’ debt. The decision lays emphasis on the need for fiscal responsibility as it highlights that loan obligations must be met to stabilize the economy.
