After a five-year hiatus, the U.S. Department of Education will resume collecting defaulted federal student loans on May 5, 2025, ending the pandemic-era pause initiated in March 2020.
- 60% of students are behind on payments.
- Four million borrowers are in late-stage delinquency.
- Federal tax refunds and Social Security benefits may be withheld for non-payment.
Education Secretary Linda McMahon stressed the necessity of repayment. Borrowers in default will be offered options to rehabilitate loans, but involuntary collections will continue for those taking no action.
Tags #Government, #Politics, #Business
Lucem News Editor’s Opinion:
Looks like the Biden gravy train is finally pulling into the station — if you signed up for a loan, congratulations, you actually have to pay it back like an adult.
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