Trump administration is hiring debt collectors to go after defaulted student-loan borrowers for first time in 6 years

The Trump administration is reintroducing debt collectors to tackle student-loan defaults for the first time in six years, signaling a shift in approach to manage the growing backlog of unpaid loans. The Treasury Department plans to pay collectors a lower fee than before, aiming to encourage more aggressive collection efforts while potentially increasing pressure on borrowers to repay. This move reflects a broader effort to address financial stability and could lead to more stringent measures if defaults continue to rise, impacting both individual borrowers and the overall economic landscape.