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Trump administration resumes forced collections on student loan debt

The Department of Education has resumed federal student loan collections, emphasizing the shared responsibility to protect taxpayers from unpaid debts. Following a suspension during the Covid-19 pandemic since March 2020, this restart is expected to impact around 5.3 million borrowers currently in default on their federal student loans. Education Secretary Linda McMahon mentioned that as […]

Borrowers with defaulted student loans are now dealing with debt collections.

Starting Monday, millions of borrowers who have defaulted on their student loans will get notifications about their accounts being sent to collections. This decision follows the Department of Education’s announcement last month aimed at shielding U.S. taxpayers from bearing costs linked to federal student loans. The department emphasized that borrowers willingly took on these loans […]

Education Department to restart collections on defaulted federal student loans

The Department of Education announced Monday that it will resume collections on May 5th with default federal student loans. The federal agency said more than five million borrowers are defaulting over a year, and sometimes over seven years, and not making monthly payments. Default student loans have not been collected since March 2020, when it […]