Trump Administration Resumes Student Loan Collections, Cuts Social Security Benefits; CFPB Rolls Back Biden Rules, Lifts Toyota $42M Consent Order

The Trump administration has resumed collections and garnishments on defaulted student loans, affecting borrowers who are struggling to repay. This includes potential reductions in Social Security benefits to as low as $750 for those in default. The Biden administration had previously taken steps to protect more of borrowers' Social Security benefits from being seized due to defaulted student loans, but these protections are now being reversed. Concurrently, the Consumer Financial Protection Bureau (CFPB) under the Trump administration is rolling back Biden-era regulations that increased the agency director's control over enforcement proceedings. Additionally, the CFPB has lifted a consent order against Toyota's U.S. financing arm, releasing it from obligations to return nearly $42 million to consumers for alleged noncompliance under a 2023 agreement established during the Biden administration.