The U.S. Department of Education announced plans to resume the collection of federal student loan repayments from borrowers in default starting May 5, following a pause that lasted over five years. This decision will affect more than five million borrowers whose loans are currently in default. Additionally, four million borrowers are reportedly behind on their payments, according to the department.
The suspension of student loan collections began in 2020, introduced as a measure to ease financial strain during the economic downturn caused by the COVID-19 pandemic. In preparation for the resumption, the Education Department’s Office of Federal Student Aid will communicate with all borrowers in default via email over the next two weeks. Notices regarding wage garnishment for those who remain in default are expected to be sent out later in the summer.
Efforts to provide student debt relief have been a notable aspect of Democratic President Joe Biden’s administration, a point of contention that drew criticism from Republicans, including current President Donald Trump. Biden’s initiatives for student loan forgiveness encountered obstacles during his presidency, including challenges in the courts.