As Trump takes 2 hard swings at Americans with student loan debt, some are discovering a surprising way out

Core Viewpoint - The Trump administration is adopting a stricter approach towards Americans with student loan debt, leading to increased financial pressure on borrowers due to denied applications for income-driven repayment plans and the impending restart of wage garnishment for those in default [1][2][3] Group 1: Impact of Policy Changes - The U.S. Department of Education has halted income-driven repayment plans, resulting in 327,955 applications being denied in August alone, which forces borrowers to face higher payments or forbearance with accumulating interest [2] - The government is set to resume wage garnishment for borrowers in default as early as January, affecting millions who are over 270 days behind on their loans [3] Group 2: Borrower Sentiment and Bankruptcy Trends - Borrowers are expressing frustration online, with some stating that monthly payments are unaffordable, highlighting the severe financial strain they are under [4] - A notable shift in bankruptcy outcomes is occurring, with borrowers now able to discharge some or all of their student debt 87% of the time through bankruptcy, a significant increase from 61% in 2017, attributed to a streamlined legal process [5][6] Group 3: Financial Pressure on Borrowers - Financial pressure is escalating, with a survey indicating that 42% of borrowers are forced to choose between student loan payments and basic necessities, and 20% are either delinquent or already in default [7] - Despite the Biden administration's cancellation of $183.6 billion in loans for over 5 million borrowers, broader forgiveness efforts have stalled, leaving many borrowers in a precarious situation [7]