In April, the Department of Education announced that it would resume collection on defaulted student loans for the first time in five years. Loan collections were paused during the pandemic in 2020 to offer some breathing room, but once confirmed as education secretary, Linda McMahon put a stop to that. “American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” she vowed in a statement.

Roughly 5.3 million student borrowers who haven’t paid for more than 360 days were thrown into collections on May 5, and government data shows that another 5.59 million could hit default status within six months. And the federal government’s powers to force repayment far outstrip those of private businesses.

The Treasury Offset Program matches borrower information with government payments, and commandeers those funds to pay the loans. Tax refunds (including from low-income supports like the Earned Income Tax Credit) can be taken entirely, and so can a portion of monthly Social Security payments for retirees and people with disabilities. As a cherry on top, the Offset Program charges the borrower a $20 fee for the privilege of having their money taken. The Education Department also uses a different program, after giving 30 days’ notice, to garnish up to 15 percent of a borrower’s weekly wages.

Because federal collections statutes have not changed since 1996, only $750 per month is protected from Social Security seizures, meaning that the Offset Program can push borrowers into poverty. None of this requires a court order, and there is no statute of limitations on collections.