The Paycheck Raid: Trump Restarts Student Loan Seizures

Benzinga2025-12-25

Beginning the first week of January, the era of student loan leniency officially ends. The Trump administration will resume administrative wage garnishment for defaulted federal student loan ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2594406956?lang=en_US&edition=fundamental","thumbnail":"https://cdn.benzinga.com/files/images/story/2025/12/24/Student-loans-education.jpeg?optimize=medium&dpr=2&auto=webp&width=260","is_english":true,"pubTime":"2025-12-25 01:26","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2594406956","market":"us","top_or_hot":-1,"title":"The Paycheck Raid: Trump Restarts Student Loan Seizures","media":"Benzinga","content":"<div>\n<p>Beginning the first week of January, the era of student loan leniency officially ends. \nThe Trump administration will resume administrative wage garnishment for defaulted federal student loan ...</p>\n\n<a href=\"https://www.benzinga.com/trading-ideas/long-ideas/25/12/49586418/paycheck-raid-trump-restarts-student-loan-seizures\">Source Link</a>\n\n</div>\n","source":"benzinga_hot_news","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>The Paycheck Raid: Trump Restarts Student Loan Seizures</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThe Paycheck Raid: Trump Restarts Student Loan Seizures\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-12-25 01:26 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/trading-ideas/long-ideas/25/12/49586418/paycheck-raid-trump-restarts-student-loan-seizures><strong>Benzinga</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Beginning the first week of January, the era of student loan leniency officially ends. \nThe Trump administration will resume administrative wage garnishment for defaulted federal student loan ...</p>\n\n<a href=\"https://www.benzinga.com/trading-ideas/long-ideas/25/12/49586418/paycheck-raid-trump-restarts-student-loan-seizures\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2517655374.HKD","symbol_name":"WELLINGTON NEXT GENERATION EDUCATION \"A\" (HKD) ACC","start_time":0,"source_url":"https://www.benzinga.com/trading-ideas/long-ideas/25/12/49586418/paycheck-raid-trump-restarts-student-loan-seizures","article_id":"2594406956","we_media_id":null,"thumbnails":["https://cdn.benzinga.com/files/images/story/2025/12/24/Student-loans-education.jpeg?optimize=medium&dpr=2&auto=webp&width=260"],"rights":{"source":"benzinga_hot_news","url":"https://www.benzinga.com/trading-ideas/long-ideas/25/12/49586418/paycheck-raid-trump-restarts-student-loan-seizures","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2594406956","pubTimestamp":1766597160,"columns":[],"sourceInfo":{"source_id":"benzinga_hot_news","name":"Benzinga"},"weMediaInfo":null,"summary":"The Trump administration will resume administrative wage garnishment for defaulted federal student loan borrowers on Jan. 7.","collect":0,"end_time":0,"defaultTopTitle":"benzinga.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2517655374.HKD":"WELLINGTON NEXT GENERATION EDUCATION \"A\" (HKD) ACC","LU2517655291.USD":"WELLINGTON NEXT GENERATION EDUCATION \"A\" (USD) ACC","SOFI":"SoFi Technologies Inc.","BK4551":"寇图资本持仓","BK4166":"消费信贷","LU2517655028.SGD":"WELLINGTON NEXT GENERATION EDUCATION \"A\" (SGDHDG) ACC","BK4549":"软银资本持仓","SLM":"学贷美","BK4535":"淡马锡持仓"},"translate_title":"薪资突袭：特朗普重启学生贷款扣押","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SLM":1.89,"SOFI":1.91},"content_text":"Beginning the first week of January, the era of student loan leniency officially ends. \nThe Trump administration will resume administrative wage garnishment for defaulted federal student loan borrowers, marking the first time these “paycheck raids” have occurred since the pandemic-era pause began nearly six years ago.\nRead Next: Trump Blasts $50 Million Defense CEO Paychecks While Weapons Face Delays\nStarting on Jan. 7, 2026, the Department of Education will dispatch the first wave of notices to roughly 1,000 defaulted borrowers. The Trump administration plans to scale the efforts month-over-month, eventually targeting the estimated 5 million Americans currently in default.\nUnder federal law, the government can seize up to 15% of a borrower's disposable income without a court order. \nFor a worker earning $50,000 a year, this could mean a loss of several hundred dollars per month—a “raid” that often happens with just 30 days’ notice. \nFurthermore, the administration has already begun the Treasury Offset Program, which allows for the seizure of tax refunds and Social Security benefits.\nWhile this creates a financial crisis for millions, it represents a massive tailwind for private lenders and refinancers like SoFi Technologies, Inc. (NASDAQ:SOFI) and SLM Corp. (NASDAQ:SLM).\nRead Next: Lucid Takes On Tesla: $50K Crossover Is Coming For The Model Y \nIncreased Demand: As the threat of garnishment looms, borrowers with higher incomes or improved credit scores are incentivized to refinance their federal debt into private loans to avoid the 15% seizure and lock in structured repayment plans.\nRefi Volume: Private lenders typically see a surge in volume when federal repayment terms tighten. SoFi, which famously sued to end the payment pause in 2023, is positioned to “skim the cream” of the federal portfolio—onboarding the most reliable borrowers who are now desperate to escape the government's collection reach.\nAs the “on-ramp” protection expires and the SAVE plan faces legal termination, the student loan landscape is shifting from relief to recovery. For many, the only way to protect their paycheck from the Jan. 7 restart may be to exit the federal system entirely.\nRead Next: \nPhoto: Shutterstock","kind":"news","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.13","shortVersion":"4.35.13","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2594406956","isCrawlerRequest":true}