Millions Face Student Loan Collections May 5—But What Happens Next?
Federal student loan borrowers in default are bracing for a major shift: starting May 5, the U.S. Department of Education will resume debt collection efforts that have been paused since March 20. This move ends a five-year pandemic-era reprieve and could impact over 5 million Americans currently in default, with that number potentially doubling in the coming months The Education Department will reactivate the Treasury Offset Program, allowing the government to seize tax refunds, Social Security benefits, and federal salaries to recover overdue student loan debts. Wage garnishment is also set...
