This is the Wilmington Standard Daily Update for Friday December 26th, 2025.

Starting in January, the Department of Education will begin garnishment on student loans that are in serious default - 270 days or more without a single payment.  Garnishments could take up up to 15% from wages or withhold tax refunds and other federal benefits.

According to Recovery Decision Science,  the highest student loan default rate is found in the humanities majors,  students who attend non-selective schools like community colleges and for-profit institutions and those who drop out.  Those in the STEM programs – Science, Technology, Engineering, and Mathematics – have the lowest rates. 

Today’s student loan program can be traced back to 1958 with the passage of the National Defense Education Act.  This program was specifically tailored to the emerging needs of our nation in response to the growing cold war.  The country needed scientists and engineers – and was willing to guarantee their educational loans to get them.  The program targeted students who showed the great academic promise that this country needed, but lacked the funds to complete the required education.

From 1965 onward – the goal of the program shifted from the needs of the country to how an educated class can benefit society as a whole.  More majors were funded, academic requirements were loosened, race and economic status indicators were added and more money was made available to colleges and universities – who happily raised tuition rates at the influx of guaranteed money.  It is a vicious circle that only enriches the coffers of universities, saddles students with useless degrees and with debt they will never pay off, and in the end puts the whole thing on the backs of taxpayers – most of whom have paid off their own debts, are in the military,  or skipped the whole process and learned a trade. 

Our need for the STEMs is never greater – and we must make sure our best and brightest students are getting the education they need today to meet the undreamed of challenges of tomorrow.  For everything else, we need to turn off the spicket of the guaranteed student loans – and replace it with a needs/risk program that evaluates return of investment based on the type of major studied.

And in the meantime, you need to repay your student loan.  Afterall, you promised.

For the Wilmington Standard, I’m Reuel Sample.  Thanks for listening.