Congressman Vicente Gonzalez Urges President Trump to Protect Student Loan Borrowers’ Paychecks
Amid an affordability crisis, South Texas student loan borrowers in default cannot afford to lose up to 15% of their wages
Contact: Alexis Torres
Washington, D.C.—As prices on everyday goods continue to rise from tariffs and millions of Americans see their health care premiums skyrocket, Congressman Vicente Gonzalez (TX-34) urged President Trump today to ensure his Administration does not garnish up to 15% of wages from student loan borrowers who have defaulted on payments and work with Congress to protect Americans’ paychecks and prevent irreparable damage to the economy. Despite the U.S. Department of Education’s announcement of a delay on wage garnishment, it remains unclear how long this temporary pause will be in effect.
Congressman Gonzalez writes, “As you may know, an estimated five million borrowers across the country have defaulted on their student loans, including an estimated 461,000 in the State of Texas – that is a collective debt of $1.67 trillion. In Texas alone, the defaulted debt is $9.5 million. To put things further into perspective, the median wage in the 34th Congressional District of Texas is $55,000 with the average student debt being $22,309. Many of my constituents are already having to choose between paying down debt or covering the necessities. Garnishing wages will only push families into further financial hardship.”
“Furthermore, borrowers who default will see their credit ratings plumet and encounter difficulties in purchasing homes, cars, and accessing credit cards further hindering any chance at upward economic mobility,” the Congressman continued.
In addition to potential wage garnishment, the U.S. Department of Education has taken steps to limit student loan repayment options that were designed to help keep monthly payments low for working Americans. This includes a pending agreement to eliminate the Saving on a Valuable Education (SAVE) repayment plan, which provided the most affordable and flexible option for borrowers. Once again, the Administration is creating an economic crisis of its own making while having the authority to enact immediate relief.
In the letter, Congressman Gonzalez also writes, “The federal student loan moratorium was the right call by your previous Administration. This was instrumental in ensuring millions of Americans stayed afloat as they found ways to pay back their student debt. It is imperative we protect our students who want to better themselves through education and not punish them for their pursuit of a better life and well-paying jobs.”
“I urge you and your Administration to act swiftly and reverse this decision and put America first. I stand ready to work with you to find an alternative such as a moratorium on collection or a bailout similar to the one provided to Argentina,” the Congressman concludes.
The letter in full can be read here.
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