‘The cruelty is just the point’: A broken student loan system has women at the center

March 16, 2026

The Trump administration's dismantling of student loan protections has created severe financial distress for millions of borrowers, particularly women and people of color who hold disproportionate amounts of the nation's $1. 7 trillion in student debt. The administration eliminated the SAVE Plan that capped monthly payments, created massive backlogs by taking applications offline, and threatened wage garnishments while simultaneously offering loan forgiveness to ICE recruits.

Who is affected

Nearly 45 million student loan borrowers, disproportionately women who hold nearly two-thirds of $1.7 trillion in student debt
Black women specifically, who rely more heavily on student loans and have been pushed out of public service jobs through government cuts
Older borrowers aged 55-plus, the fastest-growing borrower group, including seniors as old as 75 facing wage garnishment
Teachers, nurses, social workers and other public service workers in women-dominated caretaking professions
Mary Modica, a 41-year-old teacher with $102,000 in debt despite 12 years of public service
Sarah Knight, a 55-year-old grandmother who still owes $60,000 three decades after borrowing
More than 6.5 million borrowers serviced by MOHELA
800,000 borrowers with outstanding applications in backlog
Students pursuing graduate degrees in teaching, nursing, and social work
Underserved communities facing teacher shortages

What action is being taken

The American Federation of Teachers (AFT) has filed multiple lawsuits against the Trump administration and loan servicer MOHELA over student debt handling
Following an AFT lawsuit, the Trump administration agreed last month to process thousands of backlogged public service loan forgiveness and income-driven repayment applications, resulting in 20,000 workers getting debt discharged
The Department of Education reposted income-driven repayment applications online after being sued by AFT and a borrower advocacy group
Rep. Ayanna Pressley has introduced the Ending Administrative Wage Garnishment Act to protect borrowers
The Trump administration is offering ICE recruits up to $60,000 in student loan forgiveness
Dannielle Boyer, through the United Teachers of Dade union, is helping members navigate loan forgiveness using a guide she created
Borrowers are sharing their stories and advocating through organizations like the Debt Collective

Why it matters

This represents a fundamental breakdown of the social contract around education and public service, with devastating consequences for financial security and career choices. Women, particularly Black women, face a "layered tsunami of hurt" as they carry disproportionate debt burdens while being systematically excluded from public service careers and federal employment through DEI dismantling and workforce cuts. The policy changes discourage people from entering essential caretaking professions like teaching and nursing at a time when teacher shortages already threaten underserved communities, creating a cyclical crisis that will worsen educational inequality. The hypocrisy of denying relief to teachers and nurses while offering it to ICE agents weaponizes debt forgiveness to advance an anti-immigrant agenda rather than supporting communities. For individual borrowers, the stress affects every aspect of life—from heating homes and affording medical treatment to saving for retirement—with many forced to choose between loan payments and basic needs like food and rent.

What's next

The Repayment Assistance Program will become the default income-driven plan for loans disbursed after July 1, 2026
Existing borrowers must switch to the new program by 2028
The Trump administration will likely resume wage garnishments for defaulted borrowers despite temporarily backing down after public outcry
Experts predict waves of borrowers will be unable to afford payments under the new plan, worsening the default crisis
Teacher shortages are expected to intensify, particularly in under-resourced schools
The AFT lawsuits against the administration and MOHELA are ongoing

Read full article from source: The 19th