Trump’s new plan for student loans, briefly explained
This story appeared in The Logoff, a daily newsletter that helps you stay informed about the Trump administration without letting political news take over your life. Subscribe here. Welcome to The Logoff: The Trump administration will begin sending student loans in default to debt collectors today and will soon seize wages for repayment, a decision with financial consequences for […]
Demonstrators in favor of student loan debt forgiveness outside the US Supreme Court in Washington, DC, on June 30, 2023. | Anna Rose Layden/Bloomberg via Getty Images
This story appeared in The Logoff, a daily newsletter that helps you stay informed about the Trump administration without letting political news take over your life. Subscribe here.
Welcome to The Logoff: The Trump administration will begin sending student loans in default to debt collectors today and will soon seize wages for repayment, a decision with financial consequences for millions of Americans behind on their payments.
What’s the context here? The first Trump administration stopped requiring repayment of student loans in March 2020. After Joe Biden’s attempt at mass student loan forgiveness was struck down by the Supreme Court in 2023, payments resumed for loan borrowers. But at first, borrowers who weren’t making payments avoided penalties. In April, the Trump administration announced it would resume collections on loans that have not been paid, and today, time is up.
So what now? If loans are in default — meaning they have not been paid in 270 days — the federal government will begin the process of sending the accounts to collection agencies, which will hurt borrowers’ credit scores. The administration also says it will soon begin garnishing wages and federal payments.
How many people will this affect? Almost 43 million Americans have student debt. Five million borrowers haven’t made a payment in 360 days, per the Education Department. More than 20 percent of borrowers haven’t made a payment in at least 90 days, according to the credit service TransUnion.
What’s the big picture? The student loan grace period was meant to get borrowers through tough economic times, and it’s true the chaos of the pandemic economy has passed. Unemployment is at 4.2 percent, and inflation is under control. But the rosier economic picture may be temporary, as President Donald Trump’s tariffs are already hurting GDP growth, and more difficult times for workers could be around the corner. For those with spiraling student loan debt, that could be doubly painful.
And with that, it’s time to log off…
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<img src="https://www.mtlblog.com/media-library/a-quebec-flag-right-a-stack-of-money.jpg?id=61453954&width=1200&height=800&coordinates=97%2C0%2C98%2C0"/><br/><br/><p><a href="https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410006301&pickMembers%5B0%5D=1.6&pickMembers%5B1%5D=2.2&pickMembers%5B2%5D=3.1&pickMembers%5B3%5D=5.1&pickMembers%5B4%5D=6.1&cubeTimeFrame.startMonth=03&cubeTimeFrame.startYear=2025&cubeTimeFrame.endMonth=07&cubeTimeFrame.endYear=2025&referencePeriods=20250301%2C20250701" target="_blank">Statistics Canada's newest numbers</a> on average pay by industry in Quebec show exactly <a href="https://www.mtlblog.com/average-salary-quebec-canada-2025" target="_blank">how much workers in different sectors are earning</a> — and there are some big surprises in the rankings.</p><p>The updated report isn't focused on individual job titles like "surgeon" or "software developer." Instead, the data breaks down hourly wages across major industries, covering both full- and part-time employees. That means each category includes a wide range of roles and salaries, from entry-level to senior management, with big differences depending on overtime, schedules and union coverage.</p><p>While jobs in medicine, law, or engineering often top people's lists for high salaries, the data show that working in those fields doesn't guarantee the biggest paycheck. In some industries, earnings are higher across the board, regardless of job title, offering insight into where your skills could pay off the most.</p><p>Here's how every industry in Quebec stacked up in July 2025, ranked by average hourly wage (lowest to highest).</p><h3>Accommodation & food services</h3><br/><p>Average hourly wage: $20.64</p><p>Restaurants, hotels, catering and bars all fall into this category. At $20.64 an hour, it's the lowest-paying sector in Quebec — but it's also a key employer for students, part-time workers and people looking to build customer service experience.</p><h3>Agriculture</h3><br/><p>Average hourly wage: $22.85</p><p>From farms and orchards to fisheries and greenhouses, agriculture saw one of the biggest month-to-month drops in July, down from $24.93 in June. Seasonal work and fluctuating hours can have a big impact on earnings here.</p><h3>Wholesale & retail trade</h3><br/><p>Average hourly wage: $26.77</p><p>This includes wholesalers selling in bulk to businesses and retailers selling directly to consumers. The gap between the lowest and highest earners can be huge, thanks to everything from minimum-wage retail jobs to high-commission sales roles.</p><h3>Business, building & other support services</h3><br/><p>Average hourly wage: $27.04</p><p>This broad category covers services like cleaning, security, staffing, call centres and administrative support. While pay is on the lower end, it's a diverse sector with plenty of entry points.</p><h3>Other services (except public administration)</h3><br/><p>Average hourly wage: $30.26</p><p>Think repair shops, pet grooming, non-profits, laundry services and more. Pay here tends to vary depending on specialization and client base.</p><h3>Health care & social assistance</h3><br/><p>Average hourly wage: $31.72</p><p>Hospitals, clinics, elder care, childcare and social services are included here. While most doctors make way more than $32 an hour, the field mixes high-paying specialized medical roles with lower-paid care and support jobs.</p><h3>Transportation & warehousing</h3><br/><p>Average hourly wage: $31.93</p><p>Covers everything from airlines and public transit to trucking, shipping and storage. Quebec's size and trade links keep this industry in demand.</p><h3>Information, culture & recreation</h3><br/><p>Average hourly wage: $32.35</p><p>Film, publishing, broadcasting, museums, gyms and sports facilities all fit here. It's a sector where a handful of top earners can skew the average.</p><h3>Manufacturing</h3><br/><p>Average hourly wage: $35.44</p><p>Factories and plants producing goods from cars to pharmaceuticals make up this sector. Stable demand and union coverage help keep wages competitive.</p><h3>Construction</h3><br/><p>Average hourly wage: $37.50</p><p>Residential, commercial and infrastructure projects, plus trades like plumbing and electrical, fall here. Skilled labour shortages have kept pay strong.</p><h3>Forestry, fishing, mining, quarrying, oil & gas</h3><br/><p>Average hourly wage: $38.16<br/>Physically demanding and often remote, these jobs remain some of the best-paid in Quebec despite monthly fluctuations.</p><h3>Public administration</h3><br><p><br/>Average hourly wage: $43.73</p><p>Federal, provincial and municipal government jobs make up this sector, known for stability, benefits and competitive pay.</p><h3>Finance, insurance, real estate & leasing</h3><br><p>Average hourly wage: $43.76</p><p>Banks, insurers, mortgage brokers, real estate firms and rental companies are all in this category, which consistently ranks near the top in wages.</p><h3>Professional, scientific & technical services</h3><br/><p>Average hourly wage: $44.16</p><p>Legal services, accounting, engineering, IT, consulting and design are part of this diverse field, where pay varies widely depending on specialization.</p><h3>Educational services</h3><br/><p>Average hourly wage: $45.19</p><p>Schools, colleges, universities and training programs fall here. Pay is relatively even across the board compared to other industries.</p><p>In July, the median weekly wage rose 3.57% year-over-year to $1,449.98, with the hourly rate up 3.31% to $40.90. Wages also jumped 8.56% from June, suggesting summer jobs in this sector, though fewer, tend to pay more.</p><h3>Utilities</h3><br/><p>Average hourly wage: $54.13</p><p>Electricity, natural gas, water and sewage services top the list as Quebec's highest-paying industry. Wages here are among the most consistent, with fewer extreme gaps between roles.</p></br></br><p><em>Love this? Check out our <a href="https://www.mtlblog.com/notices/" target="_blank">MTL Blog noticeboard</a> for details on jobs, benefits, travel info and more!</em></p><p><em>AI tools may have been used to support the creation or distribution of this content; however, it has been carefully edited and fact-checked by a member of MTL Blog's Editorial team. For more information on our use of AI, please visit our <a href="https://www.mtlblog.com/editorial-standards" target="_blank">Editorial Standards page</a>.</em></p><p><em>This story was adapted from an <a href="nada-2025" target="_blank">August 11 article</a> that was originally published on Narcity.</em></p>
