The News10NBC Team details breaking News, Traffic and Weather.
ROCHESTER, N.Y. – The Trump administration has resumed collection efforts on student loans, affecting those in default sooner than expected. Collection efforts had been paused for about five years, but now federal benefits could be withheld as early as next month if borrowers do not arrange a payment plan.
The Education Department alerted nearly 200,000 borrowers in default this week that their federal benefits, such as Social Security and disability checks, are at risk. Officials said withholding checks can occur 30 days after receiving the notice.
About 5.3 million people in default will receive notices later this summer, warning them that their wages will be garnished. The federal government has significant powers to collect student loan debt and plans to use them.
In other news, President Donald Trump recently commented on potential price hikes for toys, suggesting parents may need to buy fewer dolls. A Mattel executive confirmed to CNBC that the company is considering increasing prices on popular toys like Barbie dolls and Hot Wheels due to tariffs. The Toy Association said they believe 80% of toys sold in the U.S. are imported from China.
Weight Watchers has filed for Chapter 11 bankruptcy to address a billion dollars in debt. The CEO said on the “Today” show that the company has no plans to shut down and will restructure to continue operations, ensuring members see no change following the filing.
The emergence of GLP-1 drugs has contributed to Weight Watchers’ financial struggles, as more people lost weight using the drugs, leading to a decline in membership and revenue.
AI assisted with the formatting of this story. Click here to see how WHEC News10NBC uses AI.
