A Shadow Falls: Trump Resumes Student Loan Collection, Gondor Calls for Aid!

A Disturbance in the Force I Mean the Shire!

Hoom! Well my dear hobbits elves and dwarves a shadow stirs in the East – or rather in the halls of Washington! It seems the Trump administration like a Balrog awakened from its slumber has resumed its pursuit of defaulted student loans. Five years of relative peace and now this! A dark cloud hangs over the Shire I mean the United States and many borrowers may soon find themselves crying 'Fly you fools!' as their precious federal benefits are snatched away.

Federal Benefits Shall Not Pass... Or Will They?

The U.S. Department of Education in its infinite wisdom (or lack thereof) has announced that approximately 195,000 borrowers will have their federal benefits garnished in a mere 30 days. Thirty days! That's barely enough time to brew a proper cup of tea let alone prepare for such a financial blow. Social Security retirement checks those golden eggs meant to sustain the elderly are now at risk. One does not simply walk into retirement without a plan but it seems some will be forced to walk back out searching for work!

Wages Precious Wages at Risk!

And there's more! Like the ever watchful eye of Sauron the Treasury Department will be sending notices to 5.3 million defaulted borrowers about the collection of their wages. This is not a drill my friends. This is a full scale assault on the wallets of the common folk. 'Later this summer,' they say as if that makes it any less terrifying. It reminds me of Saruman's Uruk hai marching on Helm's Deep – relentless and utterly devoid of mercy.

A Sharp Turn Like Pippin Near a Brandy Barrel!

Since the dark days of the pandemic began the Biden administration sought to ease the burden on struggling borrowers offering relief measures and extensions. But now alas the tide has turned. Linda McMahon the U.S. Secretary of Education declared that 'borrowers should pay back the debts they take on.' A noble sentiment perhaps but one that rings hollow when many are barely making ends meet. One might even say 'All that is gold does not glitter Not all those who wander are lost; The old that is strong does not wither Deep roots are not reached by the frost.'

The Due Diligence of Mordor? Short Notice Indeed!

Mark Kantrowitz a higher education expert rightly points out that the usual 65 day notice before garnishment has been shortened to a mere 30. Such haste! It seems they are skipping the 'normal due diligence schedule,' which if you ask me is a bit like rushing a wizard. It rarely ends well and I would know. Furthermore it appears that offsets to retirement and disability benefits historically a last resort are now being wielded like a Witch king's flail.

Hope Remains: A Light in the Darkness!

Fear not for even in the darkest of times hope remains. Borrowers can contact the government's Default Resolution Group and explore options such as income driven repayment plans or loan rehabilitation. There are even deferments and forbearances to consider. As Carolina Rodriguez of the Education Debt Consumer Assistance Program wisely suggests requesting a retroactive forbearance might buy some precious time. Remember even the smallest person can change the course of the future. Now if you'll excuse me I must consult my palantír and see if there's any way to 'speak friend and enter' into a more reasonable agreement. For as I always say 'Not all those who wander are lost.'