Leavitt: 'If You Take Out a Loan, You Have to Pay It Back' — Student Loan Collections Resume After Five Years (April 22, 2025)

White House Press Secretary Karoline Leavitt announced the end of the five-year pause on collecting defaulted student loans. “No student loan has been referred to collection since March of 2020. That comes to an end. On May 5th, the Department of Education will resume involuntary collections for borrowers with defaulted federal student loans,” Leavitt said at the White House on April 22, 2025, according to the transcript published by the American Presidency Project [1].

“America is $36 trillion in debt. We must get our fiscal house in order and restore common sense to our country. If you take out a loan, you have to pay it back. It’s very simple,” Leavitt said [1].

The video above shows Leavitt’s briefing on April 22, 2025. Quotes are from the American Presidency Project, The National News Desk and Straight Arrow News [1][2][3].

”Joe Biden’s Illegal Student Loan Bailout”

“In other news, the Trump administration has announced we will put an end to Joe Biden’s illegal student loan bailout attempts,” Leavitt said [1].

“The student loan portfolio controlled by the federal government is nearly $1.6 trillion, but fewer than four out of 10 borrowers are in repayment. This is unsustainable, unfair, and a huge liability for American taxpayers,” she said [1].

“Debt cannot be wiped away, it just ends up getting transferred to others, so why should Americans who didn’t go to college or went to college and responsibly paid back their loans pay for the student loans of other Americans?” Leavitt asked [1].

“The government can and will collect defaulted federal student loan debt by withholding money from borrowers’ tax refunds, federal pensions and even their wages,” she said [1].

Education Secretary Linda McMahon agreed. “American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” she said [2].

“The Biden Administration misled borrowers: the executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear,” McMahon said [2].

“Today, 42.7 million borrowers owe more than $1.6 trillion in student debt,” The National News Desk reported [2].

”Dropped 99.99 Percent”

Leavitt also touted the border numbers. “Under Trump, border-catch-and release has dropped 99.99 percent from worst Biden month. You can’t get much better than that,” she said [1].

“Border Patrol agents caught and immediately released 189,604 illegal aliens into the United States in December 2023 at the height of the Biden border crisis. But under President Trump, Border Patrol agents caught and released only 20 illegal aliens into the US in the month of February,” Leavitt said [1].

On the northern border, she said “just 54 illegal aliens were apprehended in the Swanton sector” in March, “a drastic 95 percent drop from the more than a thousand border crossings that were caught in March 2024.” [1]

“Moving at Trump Speed”

On trade, Leavitt said: “There is a lot of progress being made. We now have 18 proposals on paper that have been brought to the trade team.” [1]

“You have Secretary Bessent, Secretary Lutnick, Ambassador Greer, NEC Director Hassett, and Peter Navarro, the entire trade team meeting with 34 countries this week alone. We are moving at Trump speed to ensure these deals are made on behalf of the American worker and the American people,” she said [1].

She also pointed to India, where “the vice president announced terms of reference for a trade deal with India. That is a big deal.” [1]

“It’s Not a Permanent Status”

Asked about the end of temporary protections for Afghans, Leavitt said: “So, let’s just be clear about one thing. We didn’t end that proactively.” [1]

She said the protections “expired,” and that the Biden administration had given people “temporary protected status, which again is a temporary status. It’s not a permanent status in this country.” [1]

“We have a legal immigration process in this country for a reason, and all this administration is trying to do is effectuate that,” Leavitt said [1].

”Obey Federal Law”

On Harvard’s lawsuit, Leavitt said: “Well, the President has made it quite clear that it’s Harvard who has put themselves in the position to lose their own funding by not obeying federal law.” [1]

“He’s not going to tolerate illegal harassment and violence towards Jewish American students or students of any faith on our campuses across the country,” she said. “And again, it’s quite simple: if you want federal dollars, obey federal law.” [1]

By the Numbers

$1.6 trillion: the federal student loan portfolio, per Leavitt [1].
Fewer than 4 in 10: borrowers in repayment, per Leavitt [1].
99.99 percent: the drop in catch-and-release from the worst Biden month, per Leavitt [1].
18: trade proposals on paper, per Leavitt [1].
34: countries meeting with the trade team that week, per Leavitt [1].

What Happened Next

The collections came back. By the end of 2025, the Education Department “began reporting default student loans to credit bureaus and started seizing tax returns from borrowers who have failed to make loan payments,” Straight Arrow News reported [3].

Then came wage garnishment. “Effective Jan. 1, 2026, the federal government will begin garnishing wages for those in default on their student loans,” Straight Arrow News reported on Dec. 31, 2025 [3].

Citing the AP, the outlet reported that the department would send notices “to approximately 1,000 borrowers the week of Jan. 7, with more in each of the following months.” [3]

For Leavitt on Harvard’s funding a week earlier, see HYGO News’ page on April 15, 2025. For Trump’s Liberation Day tariffs, see the page on April 2, 2025.