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04/22/2025

DOE Says Defaulted Student Loans to be Referred to Debt Collection

Currently, roughly 5.3 million borrowers are in default on their loans

The Department of Education will begin collection next month on student loans that are in default, including the garnishing of wages for potentially millions of borrowers, officials said Monday.

Currently, roughly 5.3 million borrowers are in default on their federal student loans.

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.

Please select this link to read the complete article from The Associated Press.

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