The U.S. Department of Education will resume collections on defaulted federal student loans starting May 5, 2025, after a hiatus since March 2020. Borrowers will receive notifications to reassess their situations and explore repayment options, including income-driven repayment plans. The initiative is part of a broader approach to address the ongoing challenges of rising student debt, especially among middle-class families questioning the value of college against alternative career paths. The Department also plans to introduce an improved IDR process next week to ease repayment burdens.
The U.S. Department of Education is set to resume collections on defaulted federal student loans in May 2025, ending a pause since March 2020.
Education Secretary Linda McMahon stated that the goal of resuming loan collections is to ensure borrowers fulfill their repayment obligations without mass loan forgiveness.
The Department will soon launch an enhanced IDR process to simplify enrollment and eliminate the need for annual income recertification.
Many middle-class families find financing college increasingly difficult, raising questions about the value of a college education compared to trade schools.
Collection
[
|
...
]