Finance

Student Loan Borrowers Face Financial Setbacks as Collections Resume

Millions of Student Loan Borrowers Could Soon Face Financial Strain as Collections Resume

As the Department of Education prepares to restart collection efforts on defaulted student loans starting May 5, millions of borrowers already struggling to make payments may find themselves in an even more precarious position.

Currently, around 5 million borrowers have defaulted on their federal student loans, and the Department anticipates another 4 million could default in the coming months. The resumption of collections will include measures like wage garnishment, where up to 15% of a borrower’s income, tax refund, or federal benefits may be withheld and redirected to repay student loans.

For many borrowers, the last five years have brought confusion and disruption due to pandemic-era forbearance, legal challenges surrounding the SAVE (Saving on a Valuable Education) repayment plan, and shifts in federal policy across administrations. Now, the return of collection efforts is reigniting financial anxiety.

“I’m not against paying my loans back—I took them out and went to school,” one Reddit user wrote. “But without affordable repayment options or programs, it just seems really suffocating for a large number of borrowers.”

Collections Could Deepen Borrowers' Financial Struggles

The financial consequences of resumed collections may ripple across borrowers’ broader financial lives. Those who haven’t made a payment in over 270 days are especially vulnerable to wage garnishment and benefit offsets.

This comes at a time when American consumers are already under pressure. A recent survey by digital finance company Achieve found that one in three consumers view their debt as unmanageable, and 36% report being unable to pay all their bills on time.

“Many borrowers may have taken on more debt than they can manage during the moratorium, and student debt may now sit lower in the payment hierarchy,” noted Shandor Whitcher, an economist at Moody’s Analytics.

TECH

Why U.S. Tech No Longer Fits My Investment Strategy

In January, we witnessed Donald Trump’s second inauguration as president—this time with Silicon Valley billionaires seated front and center. After pouring hundreds of millions into his campaign and additional millions into the inauguration fund, the tech elite made their allegiance clear. Their support wasn't ideological—it was strategic. By backing Trump, they hoped to dodge taxes and regulations at home while leveraging U.S. political power to pressure other countries into compliance.

This alignment wasn’t born of shared values, but of necessity. The once-hopeful vision of Silicon Valley delivering global prosperity and a better future is now a relic. The platforms we once relied on have been hollowed out in pursuit of profit. Amazon is awash in low-quality products. Facebook is overrun with AI-generated junk. Twitter has devolved into a haven for far-right content. Google has sacrificed trust for flawed AI summaries, and Microsoft is pushing generative AI onto users whether they want it or not. The list keeps growing.

Our entrenchment in U.S. tech didn’t happen overnight—it was the result of decades of policy and ideology that insisted digital innovation should be led by the private sector, with governments playing a minimal role. These ideas weren’t just designed to benefit tech companies—they served to extend the geopolitical influence of the United States. As American platforms captured global markets, they grew not only in size and profit but also in power, carrying U.S. political clout with them.

For a time, that seemed like a fair trade. The tech industry was booming, and its utopian messaging helped quiet foreign concerns. Countries got just enough access and benefit to avoid questioning the deeply unequal deal they’d accepted. But now that this dominance is being challenged, and tech companies are digging in to defend their gains, the cost of that arrangement is becoming painfully clear.

CRYPTO

Spotlight on Trump’s Ethics as Dubai Conference Raises Conflict Concerns

In a packed auditorium in Dubai on Thursday, a key figure behind the Trump family’s cryptocurrency venture made a brief but significant announcement: a $2 billion deal backed by Abu Dhabi would be conducted using the firm’s digital tokens.

The transaction represents a substantial financial boost from a foreign government to a private Trump enterprise—one that could generate hundreds of millions of dollars in profit for the family. It also serves as a striking example of the ethical concerns surrounding Trump’s crypto business, which continues to blur the line between private gain and public influence.