US EditionStudent Loan Payment Collections Restart in 4 Days. Here's What Experts Say to Do Now
- The U.S. Department of Education will restart collections on defaulted student loans and resume credit reporting starting Monday, May 5, 2025.
- This restart follows a five-year reprieve during the COVID-19 pandemic that paused negative credit reporting and collection actions on defaulted loans.
- Borrowers who miss 270 days of payments are in default and risk wage garnishment up to 15% of take-home pay, tax refund seizures, and Social Security offsets.
- Experts warn ignoring the restart may cause credit scores to drop over 100 points and advise quick action through rehabilitation requiring nine on-time monthly payments.
- More than five million borrowers face renewed financial consequences, highlighting an urgent need for Congressional reform and expanded borrower support programs.
13 Articles
13 Articles
Questions swirl as millions of Massachusetts student loan borrowers brace for the restart of payments
The Department of Education will resume debt collections for federal student loan borrowers in default on Monday, during a critical moment for higher education and affordability in Massachusetts and across the country.
Boston Herald
Fall River ReporterNearly 1 million Massachusetts borrowers prep for student loan payments
The Department of Education will resume debt collections for federal student loan borrowers in default on Monday, during a critical moment for higher education and affordability in Massachusetts and across the country. “In total, around 13% of Massachusetts residents, over 900,000 residents, have some form of federal student loan debt. And from the data I was looking at, the average student loan debt in Massachusetts is around $35,000,” Educatio…
Education Department will resume collecting on defaulted student loans Monday. What will be the impact? Editorial Board Roundtable
More than 5 million defaulted student loan borrowers face possible wage garnishments, seizure of tax refunds and other consequences once their loans start being put into collection Monday under a decision by the U.S. Department of Education. President Donald Trump in his first term paused collections on defaulted student loans during the pandemic and President Joe Biden repeatedly extended the grace period. It ended October 2023 but with what am…
Federal student loan collections to resume after 5 years
LAS VEGAS (KLAS) — On Monday, the Office of Federal Student Aid will resume collections on defaulted federal student loans for the first time in five years. The pause was first implemented in 2020 under the Trump Administration as a response to the COVID-19 pandemic and continued by the Biden Administration. As a result, the U.S. Department of Education will initiate involuntary collections for defaulted borrowers, a category to which 12 percent…
As federal student loan collections resume, what options do borrowers have?
Student loan debt is of the top three debts that people in the United States carry, according to LendingTree.Sarah Smith understands that reality."I worked two jobs and school, full time, kids full time. Their dad was deployed last year, so I had zero help last year. Yeah, it was really, it was really tough, but when you're determined, you push through," Smith said.The Hampton Mom went back to school to become a counselor and make more money.As …
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