US Department of Education's Efforts to Manage $1.6 Trillion in Student Loan Debt Under Trump Administration

Published on 4.26.25

  The US Department of Education has taken steps to ensure responsible management of the student loan program, which is crucial for both individual financial health and national economic stability. The government's efforts are aimed at preventing default by borrowers who owe $1.6 trillion in debt. To this end, the Treasury Offset Program allows the government to withhold tax returns, 15% of federal salaries, and 15% of Social Security benefits from defaulted borrowers. US President Donald Trump has signed two executive orders targeting colleges that violate federal law. The first order aims to prevent foreign exploitation by ending secrecy around foreign funds in American educational institutions. This move has been welcomed by Republicans who are concerned about China exploiting academic ties to steal research and indoctrinate students. A study highlights the financial constraints faced by borrowers, with many struggling to manage their debt. The rising cost of higher education is prompting students and families to carefully consider the financial implications of various college majors. Engineering graduates can expect to graduate with debt totaling around $70,000, while humanities majors may graduate with debt exceeding $90,000. The government's efforts are aimed at preventing default by borrowers who owe $1.6 trillion in debt. The Treasury Offset Program allows the government to withhold tax returns, 15% of federal salaries, and 15% of Social Security benefits from defaulted borrowers.

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