The U.S. Department of Education has announced that collections on defaulted federal student loans will resume starting May 5, 2025. This ends the pause that’s been in place since March 2020.
🔹 If you’re in default, now is the time to act. Borrowers will start receiving emails with options to:
✅ Make a monthly payment
✅ Enroll in an income-driven repayment plan
✅ Sign up for loan rehabilitation
🔹 Why this matters:
- Over 5 million borrowers are currently in default
- Nearly 10 million could be in default in a few months if no action is taken
- Only 38% of borrowers are up-to-date on their payments
💡 Support is available – From enhanced tools like the Loan Simulator and AI Assistant to extended customer service hours, help is being ramped up to get borrowers back on track.
Read more and find resources to get started here:
Don’t wait until collections begin—take action now to protect your financial future. 💸
