The Trump administration has resumed collecting on defaulted student loans, affecting approximately 5.3 million borrowers who owe over $1.6 trillion in student debt:

- *Consequences of Defaulting*: The government can seize:

- *Wages*: Through wage garnishment, the government can deduct payments directly from your paycheck.

- *Tax Refunds*: Defaulters may lose their tax refunds, including federal and state refunds.

- *Social Security Benefits*: In some cases, Social Security checks can be seized, which may disproportionately affect seniors and people with disabilities.

- *Loan Rehabilitation Option*: Borrowers in default can try loan rehabilitation, a one-time option to remove default status by making nine on-time payments.

- *Impact on Credit Score*: Missed payments can damage credit scores, and default status can be reported to credit bureaus, lasting for years.

- *Repayment Strategies*: Borrowers can explore income-driven repayment plans or work with financial advisors to find the best repayment plan for their situation.

- *Criticism and Concerns*: Borrower advocates criticize the sudden change, citing policy whiplash between administrations. Some lawmakers have condemned the policy, particularly its impact on older Americans who rely on Social Security benefits.#USHouseMarketStructureDraft