00:00The Trump administration is preparing to ramp up collections from nearly 10 million Americans
00:04who have defaulted on their federal student loans, with penalties possibly beginning in 2027.
00:11The Treasury Department is considering hiring private debt collectors,
00:15while the government could seize tax refunds and certain federal benefits or garnish borrowers'
00:20wages. Officials have previously delayed the measures over concerns that aggressive collections
00:25could further hurt low-income households, and the plans may not be announced until after the
00:31midterm elections. The proposed crackdown comes as the government seeks to recover money
00:36owed on its $1.7 trillion in federal student loans.
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