Linda McMahon Says American Taxpayers No Longer 'Collateral' As Student Debt Collection Restarts May 5

The U.S. Education Department said it will restart collections on May 5, reviving tactics like intercepting tax refunds and Social Security checks to recover past‑due federal loans.

What Happened: According to an official press release, roughly 5 million people are at least 270 days behind, and the department will again tap the Treasury Offset Program to claw back debts. Wage garnishment, which lets the government order employers to skim paychecks, could kick in by summer.

"American taxpayers will no longer be forced to serve as collateral for irresponsible student‑loan policies," Education Secretary Linda McMahon said, blasting the Biden‑era payment pause. "The executive branch does not have the constitutional authority to wipe debt away."

Monday's notice urges defaulters to call the Default Resolution Group and either make a small payment, enroll in an income‑driven plan, or begin loan rehabilitation. But those lifelines are scarce: in February, a federal court killed the Biden administration's SAVE plan, and the department has since pulled all income‑driven repayment (IDR) applications from its website.

See also: Married Borrowers Could See Major Changes to Student Loan Payments: What’s Happening With IDR Plans

Advocates say borrowers are being cornered. "Trump and McMahon have blocked these borrowers' path out of default and are now feeding them into the maw of the government debt‑collection machine," said Mike Pierce, the Executive Director of Student Borrower Protection Center, a non-profit organization.

Why It Matters: The restart lands as President Donald Trump moves to dismantle the Education Department entirely. A March executive order directs McMahon to fold the agency into the Small Business Administration, which would inherit a $1.8 trillion loan book.

Officials promise a revamped "enhanced" IDR system next week that will eliminate annual income paperwork, but details remain thin, and the countdown to May 5 is short.

Photo Courtesy: Pla2na On Shutterstock.com

Read next:

• Mark Cuban Once Revealed A Childhood Habit That His Automobile Upholsterer Father Was Happy About: ‘I Don’t Understand What You’re Doing, But I’m Glad You’re Doing It’