Education Department to Restart Collections on Defaulted Student Loans May 5

Restart of Student Loan Collections

• 🎯 The Department of Education will restart collections on defaulted federal student loans starting May 5th.
• ⚠️ This marks the first collection of defaulted loans since March 2020, when payments were paused due to the pandemic.

Impact on Borrowers

• 👥 Approximately 5 million Americans who are already in default on their student loans will be affected.
• 💰 Collections will resume for those who were in default for at least nine months before the pandemic-related pause began.

Education Department's Stance

• 🗣️ Education Secretary Linda McMahon criticized the Biden administration for pausing loans, stating the executive branch lacks the constitutional authority to unilaterally forgive debt.
• 📢 The department is warning borrowers that they will soon hear from debt collectors.
• 🏛️ The department emphasizes that taxpayers should not have to bear the burden of these defaulted debts.