Trump’s student loan ‘catastrophe’ looms once it’s no longer ‘politically insane’: report

The Trump administration is quietly preparing to go after the wages, tax refunds and federal benefits of millions of Americans in default on their student loans, but not until after the midterm election.Five sources told the Washington Sun that officials are readying financial penalties for the nearly 10 million borrowers in default. Three of the sources said the Treasury Department is moving ahead with plans to hire private debt collectors, possibly as soon as November, but those plans are unlikely to be announced before Election Day.“It would be politically insane to do this before the midterms,” one source said. “But 2027 probably makes a little more sense to give Treasury time to get contracts signed, up and running.”Some officials are pushing to begin seizing benefits and garnishing wages for the current tax year, which runs up to the April 15, 2027, filing deadline. Sources cautioned that the timeline could slip...