Student Loan Collections Restart: Vital Information You Must Understand

On May 5, the U.S. Department of Education (DOE) revived the collection of defaulted federal student loans after pausing since March 2020. Affected borrowers received emails warning about wage garnishment and withheld tax refunds. With 42.7 million borrowers owing over $1.6 trillion, nearly 10 million could default soon. The DOE urges affected individuals to contact the Default Resolution Group. Racial disparities persist, with Black graduates facing significantly higher debt than their White peers. Explore repayment and forgiveness options at Studentaid.gov.