U.S. Department of Education Resumes Student Loan Collections

(Reuters) – The U.S. Department of Education announced on Monday that it will resume collecting federal student repayments from borrowers in default starting May 5, after a pause of over five years.

This resumption will affect more than 5 million borrowers in default, according to the Education Department’s statement. Additionally, 4 million borrowers are late in their payments.

The pause on student loan collections began in 2020 to provide relief during economic uncertainty due to the COVID-19 pandemic.

In the next two weeks, all borrowers in default will receive email communications from the Education Department’s Office of Federal Student Aid. Notices regarding wage garnishment for those in default will begin later this summer.

The Biden administration made multiple attempts to provide student debt relief, which faced criticism from Republicans, including former President Donald Trump. Biden’s student loan forgiveness policies also encountered legal challenges during his term.