April 26, 2025 - 11:11
The Education Department has announced that it will restart the collection of defaulted student loans starting May 5. This decision marks a significant shift in policy, as many borrowers have been under a temporary pause on payments due to the ongoing economic impacts of the pandemic. The resumption of collections is expected to affect millions of borrowers who have fallen behind on their payments.
As the deadline approaches, the Department is urging borrowers to prepare for the transition back to repayment. Those with defaulted loans will need to explore their options for repayment plans or alternatives to avoid further penalties. The Education Department is providing resources to help borrowers understand their rights and responsibilities as they navigate this change.
Advocates for student borrowers are concerned about the potential financial strain this could impose on individuals who are still recovering from the economic fallout of recent years. As the deadline nears, discussions continue around the need for comprehensive solutions to support borrowers in managing their student debt effectively.
