Sequoia Carrillo
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The Trump administration says it will resume seizing pay from student loan borrowers in default in January.
The administration previously said it would resume garnishing tax refunds and social security benefits from qualifying borrowers last May, but backtracked a month later.
A department spokesperson says the first notices will be sent out the week of January 7th to approximately 1,000 defaulted borrowers.
The notices are expected to increase on a monthly basis throughout the year.
Student loan experts say the timing of the move, colliding with rising health care costs, will put added strain on low and middle income borrowers.
The popular but controversial saving on a valuable education or save plan promised monthly payments as low as $0 for low-income borrowers and expedited loan forgiveness.
The Biden administration proposed the program in 2023 with millions signing up within weeks.
Republican state attorneys general, led by the state of Missouri, argued in court that the plan was unlawful because the agency lacked the authority to bypass Congress on a major cancellation of debt.
The plan was struck down in district and appeals courts.
If the judge approves this proposed settlement, more than 7 million borrowers will have a, quote, limited time to select an alternative repayment plan and begin making payments.
It's the last day for colleges to agree to a list of commitments that align with the Trump administration's political priorities in exchange for preferential access to federal funds.
The initial agreement was sent to nine colleges, both public and private, on October 1st.
Some of the demands include barring transgender students from using restrooms or playing sports that align with their gender identities, freezing tuition for five years, and limiting international student enrollment.
Among the latest to reject the proposal is Dartmouth College, citing concerns over compromising academic freedom and the ability to govern itself.
The agreement, or what the administration is calling the Compact for Academic Excellence in Higher Education, would provide priority federal funding to the schools that pledge support for many of President Trump's policy goals.