Education Department To Begin Collection On Student Loans In Default

The Trump administration's announcement marks an end to a period of leniency that began during the COVID-19 pandemic.

The Education Department will begin collection on student loans that are in default.

The Trump administration’s announcement marks an end to a period of leniency that began during the COVID-19 pandemic.

No federal student loans have been referred for collection since March 2020, including those in default which is around 5.3 million borrowers.

“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” Education Secretary Linda McMahon said.

Starting on May 5, the department will begin involuntary collection through the Treasury Department’s offset program from people with past-due debts to the government.

After a 30-day notice, the department will also begin wage garnishment for borrowers in default.

The decision to send debt to collections has drawn criticism.