U.S. Education Department to Restart Collections on Defaulted Student Loans

April 22, 2025 - 02:42

The U.S. Department of Education has confirmed that it will recommence the collection of defaulted federal student loans starting on May 5. This decision marks a significant shift in policy as the department aims to address the growing issue of student loan defaults, which have affected millions of borrowers across the country.

The Office of Federal Student Aid (FSA) will implement this initiative as part of its broader strategy to support borrowers and improve the overall health of the student loan program. The resumption of collections comes after a pause that was put in place to provide relief during challenging economic conditions.

Borrowers who have fallen behind on their payments will be contacted by loan servicers, and the department encourages them to explore repayment options. The FSA is committed to offering assistance to help borrowers navigate their financial obligations and avoid further complications related to their loans.

As the deadline approaches, it is crucial for borrowers to stay informed and proactive about their loan status.