Trump Administration to Resume Federal Student Loan Collections May 5

The Trump administration is resuming federal student loan collections starting May 5, ending the pandemic-era pause in place since March 2020.

This includes garnishing wages and withholding tax refunds from borrowers in default. Critics say the move could worsen financial strain for struggling families.

While the Biden administration attempted broad loan forgiveness, most efforts were blocked, though over $183 billion in student debt was still canceled for 5 million borrowers through other programs.

Currently, fewer than 40% of borrowers are current on payments, and millions are delinquent or in default. Borrowers can avoid garnishment by entering a one-time loan rehabilitation program.

Student loans in default to be referred to debt collection, Education Department says – WHEC.com