Yes, the Department of Education Will Garnish Your Wages for Defaulted Student Loans. Here's What to Do

Nevadans Face Reality as Biden’s Student Loan Pause Ends: Nearly 12% in Default, Collections Back in Full Force - Nevada Globe

After years of kicking the can down the road, reality has finally come knocking. The U.S. Department of Education has restarted collection efforts on overdue student loans — and for Nevada borrowers, the numbers are a wake-up call. Nearly 12% of the state’s student loan holders are now officially in default, a glaring sign of what happens when temporary government handouts end and accountability returns. Borrowers who fail to make repayment arra…

Department of Education to start collecting student loans

(CNN, KYMA/KECY) - The Department of Education has announced it will restart collecting federal student loans in default on May 5th. It will end a roughly five-year-long pandemic era pause that could impact more than five million borrowers. Student loans will go into default after 270 days without payment. The department is urging borrowers in default to start paying a monthly payment, enroll in an income driven repayment plan, or sign up for lo…

Nearly 12% of Nevada's student loan holders in default as federal collection efforts restart

Nearly 5 million people across the country have not made payments on their student loans for nearly a year (360 days), according to the U.S. Department of Education. But starting May 5, the department will begin collecting money from those who have defaulted, the department announced last Monday. WATCH | What the federal collection efforts will mean for Nevadans Nearly 12% of Nevada's student loan holders in default as federal collection efforts…

Student Loan Collections Restarting May 5—Here’s What to Know

The Department of Education will resume collections on May 5 for federal student loans in default for the first time in five years, impacting some 5 million borrowers. Since March 2020, the department has not collected on default loans. When Congress mandated student and parent borrowers to resume student loan payments in October 2023, the previous administration granted borrowers another year to be protected from the negative effects of missed …

Student Loan Collections To Resume May 5: Iowa Senator Grassley Warns Of Potential Scams

After a prolonged pandemic-era pause, federal student loan collections are set to resume on May 5, prompting Iowa Senator Chuck Grassley to issue a warning and provide resources for borrowers. The resumption follows a three-year hiatus that began in March 2020, leaving many borrowers unprepared for the return of monthly payments. According to the U.S. […] Student Loan Collections To Resume May 5: Iowa Senator Grassley Warns Of Potential Scams

Views from the nation’s press

The Boston Herald on how outrage over student loans should be aimed at colleges: Student loan borrowers are learning a harsh lesson familiar to most adults: when you take out a loan and agree to pay it back, there are consequences if you don’t. Cue the outrage. The Department of Education announced that it will restart collecting federal student loans in default on May 5, ending a years-long pandemic-era pause, according to reports. More than 5 …