Treasury is preparing to hand nearly 10M student loan defaulters to private debt collectors, with wage garnishment of up to 15% of after-tax income back on the table as soon as November. The Washingto

What happened: The Treasury Department is reportedly preparing to hire private debt collectors, possibly as soon as November, to pursue Americans in default on federal student loans. Why it matters: Officials cited political risk, with one source saying it would be politically insane before the midterms and that 2027 makes more sense. Advocates call the post-election timing opportunism, and Michael Pierce said Treasury may lack data needed to certify the debts. Coverage: 3 outlets in 24h

The Treasury Department is reportedly preparing to hire private debt collectors, possibly as soon as November, to pursue Americans in default on federal student loans.

Officials cited political risk, with one source saying it would be politically insane before the midterms and that 2027 makes more sense. Advocates call the post-election timing opportunism, and Michael Pierce said Treasury may lack data needed to certify the debts.