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Treasury takes over student loan collections for defaulted borrowers

Talk Education

Talk Education
Treasury takes over student loan collections for defaulted borrowers
Mar 20, 2026
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 What happens when the government takes a tougher approach to unpaid student loans? About 9 million borrowers in default could now have their debt handled by the U.S. Treasury, which has stronger collection tools like wage garnishment. Supporters say it improves repayment, while critics worry it adds pressure on struggling borrowers. (Source: New York Post)