Gillibrand Criticizes Education Secretary’s Plan to Garnish Wages of Student Loan Borrowers in Default
- Audra Kieta
- May 7
- 2 min read
Updated: 3 days ago
U.S. Sen. Kirsten Gillibrand is raising alarms over a decision by Education Secretary Linda McMahon to resume involuntary income withholding from federal student loan borrowers in default, a move that could impact nearly 10 million Americans.
In a statement released Thursday, Gillibrand criticized the Department of Education’s plan to garnish wages, tax refunds, pensions, and Social Security benefits starting May 5. She said the policy would “unnecessarily exacerbate economic strains in local economies,” particularly as New Yorkers face growing concerns about a possible recession.
“One in eight New Yorkers carry student loan debt,” Gillibrand said. “These borrowers are our teachers, public servants, health care workers, and engineers — people who provide essential services and deserve a fair system that supports, not punishes, them.”
The senator also highlighted the burden the policy may place on seniors who either borrowed to help family members attend college or still carry debt from their own education. She noted that her office has heard from constituents who have had their loans placed into forbearance without consent or experienced payment increases of up to 450% due to issues with the Federal Student Aid system.
Gillibrand’s criticism comes amid growing concern among New York leaders about the broader impacts of student loan policy. State Senators Michael Gianaris, Brad Hoylman, and Kevin Thomas recently introduced the Tax-Free Debt Forgiveness Act, a bill aimed at exempting forgiven student loan debt from state income taxes. Meanwhile, the United University Professions union has called on Governor Kathy Hochul to support legislation expanding access to public loan forgiveness programs, particularly for part-time public employees who fall through the cracks of current federal definitions.
In the legal sector, a coalition of district attorneys, public defender organizations, and unions has urged Hochul to allocate $4 million in the fiscal 2026 budget to bolster New York’s own loan forgiveness program for public interest lawyers, citing uncertainty over future federal relief.
In a letter to McMahon, Gillibrand demanded answers on how the administration plans to notify borrowers, define financial hardship, and address service disruptions. She also questioned how the department would manage the increased administrative workload amid recent staff reductions.
“Wage garnishment should always be a last resort,” she wrote. “This new policy only deepens existing problems and undermines trust in the federal student loan system.”
Gillibrand requested a response from Secretary McMahon by May 16. The Department of Education has not yet responded to the inquiry.
Read the full letter from Gillibrand to The Department of Education below:
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