Student Loan Debt Trap

The article details the resumption of aggressive student loan debt collection efforts by the US government, specifically targeting defaulted borrowers. After a five-year hiatus, the Trump administration restarted wage garnishments, tax refund seizures, and Social Security benefit offsets to recover outstanding student loan debt. These measures disproportionately impact low-income individuals, particularly older borrowers reliant on Social Security. Simultaneously, the administration has proposed significant cuts to federal financial aid programs, including Pell Grants and subsidized loans, threatening access to higher education for future students. The article argues that this dual strategy of aggressive debt collection and defunding higher education reflects a broader attack on public education and a prioritization of profit over the well-being of borrowers. The administration contends that the student loan system is unsustainable and requires reform. However, the article posits that the policies exacerbate financial hardship for borrowers while failing to address the root causes of the student debt crisis, such as rising tuition costs and stagnant wages. It characterizes the government's approach as prioritizing debt recovery over providing genuine relief and affordable higher education opportunities. The article connects these policies to a broader agenda of austerity and privatization, detrimental to working-class families. find the original article here: https://www.wsws.org/en/articles/2025/05/07/yddc-m07.html