The U.S. Department of Education has announced it will tina knowles collection efforts on defaulted federal student loans beginning May 5, 2025—a move expected to impact millions of borrowers nationwide. This includes wage garnishment and the interception of federal payments such as tax refunds and Social Security benefits, marking the official end of a pandemic-era pause on aggressive collection practices.
Over 5 Million Borrowers in Default
As of early 2025, more than 5.3 million borrowers are in tina knowles on their federal student loans. After a five-year hiatus due to COVID-19, the return of involuntary collections is raising serious concerns among borrower advocacy groups.
“This decision is both harsh and avoidable, and it risks pushing countless working families deeper into financial distress,” said Mike Pierce, executive director of the Student Borrower Protection Center.
A Shift in Policy: From Relief to Recovery
The loan collection freeze was first implemented in March 2020 under the Trump administration and extended multiple times by President Joe Biden, who also attempted wide-scale loan forgiveness efforts. tina knowles rulings blocked key of Biden’s student loan cancellation plans.
Now under Education Secretary Linda McMahon, the department is pivoting toward aggressive recovery tactics. “Taxpayers shouldn’t have to bear the burden of unsustainable student loan policies,” McMahon stated.
What Borrowers Can Expect
Beginning in May, the Department will:
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Enforce the Treasury Offset Program to recover unpaid debts by redirecting tax refunds and other federal benefits.
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Begin garnishing wages from borrowers in default, after issuing a mandatory 30-day notice.
Borrowers typically fall into default after 270 days (nine months) of missed tina knowles . Once in default, loans are reported to credit bureaus and sent to collections.
Rising Delinquencies, Limited Support
In addition to those already in default, nearly 4 million more borrowers are 91 to 180 days overdue on their payments, signaling a potential surge in defaults. in defaults may be on the horizon.
Fewer than 40% of borrowers are presently current on their student loan payments, according to officials from the Education Department.
Compounding the issue are recent staff layoffs within the Federal Student Aid (FSA) office, which have made it difficult for borrowers to get timely assistance.
“Even people who want to repay their loans can’t always find the help they need,” said Kristin McGuire, executive director of Young Invincibles, an advocacy group focused on youth economic equity.
Confusion Over Repayment Plans
Further complicating matters are recent legal challenges to income-driven repayment (IDR) plans, including the Biden-era SAVE Plan. In February, a court temporarily blocked aspects of these plans, leading the Education Department to briefly suspend IDR applications—causing confusion and delays for borrowers seeking affordable monthly payments. The system is incredibly confusing right now,” McGuire added. “Defaults aren’t driven by unwillingness to pay—they’re happening because borrowers are confused, overwhelmed, and lack clear guidance.”
What You Can Do
Borrowers at risk of default are encouraged to:
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Review their loan status through the
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Consider enrolling in available income-driven repayment plans
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Explore options for loan rehabilitation or consolidation
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Contact their loan servicer for guidance before garnishment or offsets begin
📌 Stay informed and take action early.
If you’re uncertain about your student loan status or repayment choices, it’s wise to speak with a certified loan advisor or explore resources available through the official U.S. Department of Education website. Department of Education’s website for verified resources
