When will student loan debt collection resume? Here’s the date confirmed by the Department of Education
Millions of Americans who have defaulted on their federal student loans are about to face renewed collections starting in May, including the potential garnishment of wages, tax refunds, and federal benefits. This decision marks a major policy shift by the Education Department, which is ending a more than four-year hiatus on debt collection that began during the COVID-19 pandemic.According to officials, more than 5.3 million borrowers are currently in default, and another 4 million are delinquent-falling between 91 and 180 days behind on payments. Defaulted borrowers have not faced collections since March 2020, when the Donald Trump administration implemented an emergency pause as part of a broader relief effort during the pandemic. That pause continued under the Biden administration through 2023, with a final grace period ending in October 2024.Beginning May 5, the department will resume involuntary collections via the […]
