According to New York Post, the Trump administration announced plans to seize wages, pensions, and tax refunds of individuals who default on federal student loans. The Department of Education will resume collections on defaulted federal student loans on May 5, potentially garnishing wages for millions of workers.

The Treasury Offset Program will be reinstated, allowing the government to withhold tax refunds and federal benefits to recover unpaid student loans and potentially garnish wages after a 30-day notice.

Roughly 10 million borrowers could be affected by the collections process, with wage garnishment notices expected to follow this summer. 5.3 million borrowers have been in default for more than a year, with some cases exceeding seven years.

The announcement comes amidst a turbulent time for the Department of Education, with layoffs and downsizing complicating borrowers’ ability to navigate their loans. Defaulted borrowers will be contacted before the deadline to set up repayment plans or loan rehabilitation.

President Trump has criticized President Biden’s ideas that would benefit the American people, signaling an end to potential loan forgiveness. The administration emphasizes the need for borrowers to repay their loans and rejects the idea of loan forgiveness.

The program will enforce repayment through various means, including withholding tax refunds and federal pensions. To avoid garnishment by seeking loan rehabilitation or repayment plans, as the Trump administration ends payment pauses.