Your student loan bill is due - Today, Explained Recap

Podcast: Today, Explained

Published: 2026-01-13

Duration: 26 minutes

Guests: Chris Quintana, Jason Juliano

Summary

Student loan payments are resuming, with significant implications for borrowers who are delinquent or in default. Wage garnishment is a key tool the government is using to enforce repayment.

What Happened

Chris Quintana, an investigative reporter at USA Today, discusses the federal government's new plan to enforce student loan repayments by garnishing wages for borrowers in default. This measure targets about a thousand borrowers initially but is expected to expand. Quintana explains that borrowers have a 30-day notice period before garnishment begins, during which they can pursue options like payment plans or hearings.

The episode highlights the severity of student loan debt, with 5.5 million borrowers in default and about 6 million more delinquent. Quintana emphasizes the impact of delinquency on credit scores, which can affect access to loans and financial stability. Listener Lexi from Michigan shares her concerns about her student loans, to which Quintana advises understanding her servicer and exploring repayment options through studentaid.gov.

The episode delves into the economic implications of widespread student loan defaults, suggesting that it could significantly affect consumer spending and the broader economy. The Trump administration's approach to handling student debt includes proposing limits on borrowing for graduate programs, which could shift more students toward private loans.

Jason Juliano, a law professor, discusses the bankruptcy discharge of student loans, countering the myth that it's impossible. He reveals that a majority of those who attempt to discharge student loans through bankruptcy are now succeeding, thanks to new guidance from the Department of Justice.

Juliano explains the historical context of student loan bankruptcy, noting that earlier laws made it nearly impossible to discharge student loans. However, recent changes have simplified the process, allowing more debtors to achieve this relief.

The episode concludes with a look at the moral and financial implications of student loan discharge in bankruptcy, emphasizing that while bankruptcy can impact credit, it offers a necessary lifeline for those overwhelmed by debt.

Key Insights

• The federal government plans to enforce student loan repayments by garnishing wages for borrowers in default, starting with about a thousand borrowers and potentially expanding.
• There are 5.5 million borrowers in default on their student loans, with an additional 6 million delinquent, which can severely impact their credit scores and financial stability.
• Recent changes in the law have made it easier for borrowers to discharge student loans through bankruptcy, with a majority of those attempting it now succeeding due to new guidance from the Department of Justice.
• The Trump administration proposed limits on borrowing for graduate programs, which could drive more students toward private loans, affecting the landscape of student debt.