Will your student loans be sent to collection? What to know about Education Department changes

Trump administration resumes student loan collections, threatening millions with garnished wages and economic hardship

Restarting federal loan garnishments and ending relief programs, the Trump administration advances a sweeping overhaul that critics say punishes struggling borrowers and deepens a national crisis.

After 5-Year Hiatus, Federal Student Loan Collections Set to Resume

After five years on hold, the U.S. Department of Education will resume collecting student loan payments on May 5. “American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” Secretary of Education Linda McMahon said in a statement. The Office of Federal Student Aid has not collected defaulted loan payments since March 2020 amid the outbreak of the COVID-19 pandemic. Congress required students and…

Student loan payment change: What it means for borrowers' credit scores

After a nearly three-year freeze on mandatory payments, the U.S. Department of Education is phasing out its lenient approach to missed payments.

U.S. Dept. of Education preparing to garnish wages from student borrowers

SAVANNAH, Ga. (WSAV) - The Department of Education announced Monday it will resume collections on defaulted student loans, and soon, it will begin garnishing wages from those that don't pay up. On May 5, the Trump administration is going to start collecting again after five years of paused payments. "The economy is what it is, and you have to make a certain amount of money by a certain point, or you're in debt for the rest of your life," Cameron…

Student loans in default will be sent for collection. Here's what borrowers need to know - The Nevada Independent

By Adriana Morga, Associated Press NEW YORK (AP) — Starting next month, the Education Department says student loans that are in default will be referred for collections. Roughly 5.3 million borrowers are in default on their federal student loans and soon could be subject to having their wages garnished. Referrals for collection had been put on hold since March 2020 because of the COVID-19 pandemic, when the U.S. government also paused federal st…

What Student Loan Borrowers Should Know About The New Collections Crackdown By The Department Of Education

Here’s what student loan borrowers need to know about the Department of Education’s crackdown on defaulted federal student loan borrowers.