The Trump administration may be "improperly" seizing defaulted student borrowers' tax refunds by failing to provide the required notice, some lawmakers say.
"These seizures have already led to evictions and utility shutoffs that are harming American families," more than a dozen House Democrats, including Reps. Jamie Raskin of Maryland and Frank Pallone of New Jersey, wrote in a Sept. 26 letter to Education Secretary Linda McMahon.
The federal government has extraordinary collection powers on its student loans, and it can take hold of borrowers' tax refunds , paychecks and Social Security retirement and disability benefits. After a half-decade pause of collection activity on federal student loans due to Covid-era policies, the Trump administration announced on April