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Student Loan Collections Resume, Affecting 5 Million Borrowers

5/20/2025

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Summary

Story summary

After a five-year hiatus, federal student loan collections kicked back into gear in April 2023, impacting over 5 million borrowers in default. With wage garnishments looming and confusion surrounding repayment plans, many are grappling with the harsh realities of the Trump administration's tough collection tactics, which starkly contrast with earlier relief efforts.

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Story summary

After a five-year hiatus, federal student loan collections kicked back into gear in April 2023, impacting over 5 million borrowers in default. With wage garnishments looming and confusion surrounding repayment plans, many are grappling with the harsh realities of the Trump administration's tough collection tactics, which starkly contrast with earlier relief efforts.