Here's How You Can Challenge Wage Garnishment for Defaulted Student Loans

"While defending himself against attacks by Hillary Clinton, Trump referred to himself as the "king of debt," touting his classic business skills in renegotiating debts for his financial gain. Trump flipped the script on how many think about debt, which has long been held as a deep moral obligation to be paid in every account. Rather, Trump told the truth about debt: that the debtor-creditor relationship, much like the worker-boss relationship, implies financial power on both ends."

"For the first time since the onset of COVID-19, the Trump administration is set to garnish U.S. workers' wages for defaulted student loans. The Department of Education has announced that beginning this week it will send at least 1,000 borrowers a notice of intent to garnish wages, sending additional notices every month as it expands its efforts to forcibly collect money from millions of borrowers in default."

"Most Americans with student loan debt cannot afford to keep up with their payments, which average over $400 a month. With stagnant wages, record-high household debt burdens, the rising cost of college, and ballooning interest, the student debt crisis has only worsened since its inception. Student debt is often difficult to discharge in bankruptcy. Unlike mortgages and every other type of debt, student loan interest can capitalize - forcing debtors to pay interest on the interest on the principal."

Donald Trump's 2016 praise of debt framed borrower-creditor relations as mutual power rather than moral obligation. The current administration is poised to garnish wages for defaulted student loans, with the Department of Education beginning notices to at least 1,000 borrowers and planning monthly expansions. Wage garnishment will forcibly collect from millions of borrowers in default. Most borrowers cannot afford average monthly payments exceeding $400 amid stagnant wages, record household debt, rising college costs, and compounding interest. Student loans are difficult to discharge in bankruptcy and allow interest capitalization, worsening balances. The SAVE repayment plan is cited as the most affordable option.

Read at Truthout