The Trump administration is making significant changes to how it deals with student debt.

Its resumed loan collections from past borrowers, and those changes could have a major impact on paychecks and credit ratings for lots of people.

This month, 2 million overdue borrowers could be facing those penalties.

Economics correspondent Paul Salman has more.

About a year before the pandemic hit, they started garnishing my wages.

They were garnishing about 150 bucks from every paycheck.

Sarah Bundy was in default on her student loans.

But she was making just the minimum wage in New York State while working at a home for people

with disabilities.

They garnished those payments for about a year, which brought me below minimum wage.

And then COVID hit.

And the garnishment stopped.

Garnishment, as in pulling loan payments out of a borrower's paycheck before she or he receives it.

As student loan collections resume this summer, Bundy expects garnishment to resume too.

When the garnishment start again, it's going to tip us over into the poverty line.

Okay, let's take a step back for a second. How do we get here? At the dawn of the pandemic,

the Trump administration had paused all student loan repayment requirements to help provide

economic relief. Student debt relief. And I'm honoring that commitment today.

The incoming Biden administration kept in place the payment pause while seeking to cancel

some student loan debt altogether. That was ultimately shot down by the Supreme Court.

So Biden then rolled out a program that enabled some borrowers to have their loans forgiven

after a certain number of years.

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