Trump Admin Says It Will Collect Defaulted Student Loans From Borrowers' Wages: 'The Federal Government Can And Will'

"The Department of Education will resume involuntary collection for borrowers with defaulted student loans. The student loan portfolio controlled by the federal government is nearly $1.6 trillion, but fewer than 4 in 10 borrowers are in repayment. This is unsustainable, unfair and a huge liability for American taxpayers," Leavitt said.

Leavitt's statement follows the Department of Education's announcement on Monday, which impacts some 5 million borrowers. 4 million more could be in the same situation in a matter of months, according to CBS News.

The outlet recalled that there have been no referrals for collection since March 2020, when Trump paused payments and interest accrual during the Pandemic. The Biden administration extended the pause until October 2024. The then-president attempted several times to wipe out such debt for tens of millions, but was repeatedly rejected by courts.

"Going forward, the Department of Education, in conjunction with the Department of Treasury, will shepherd the student loan program responsibly and according to the law, which means helping borrowers return to repayment — both for the sake of their own financial health and our nation's economic outlook," said Education Secretary Linda McMahon on Monday.

Leavitt added on Tuesday that "America is $36 trillion in debt. We must get our fiscal house back in order and restore common sense to our country. If you take out a loan, you have to pay it back, it's very simple."