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Student Loan Collections Resume: 5.3 Million Face Pressure

4/22/2025

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Summary

Story summary

Starting May 5, 2024, the U.S. Department of Education will reignite collections on defaulted federal student loans, ending a four-year pause. With 5.3 million borrowers in default and 60% struggling to make payments, the department is set to garnish wages and tap into the Treasury Offset Program to reclaim overdue debts, intensifying the financial pressure on many.

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Story summary

Starting May 5, 2024, the U.S. Department of Education will reignite collections on defaulted federal student loans, ending a four-year pause. With 5.3 million borrowers in default and 60% struggling to make payments, the department is set to garnish wages and tap into the Treasury Offset Program to reclaim overdue debts, intensifying the financial pressure on many.