News-News.Zip

News in English (USA) / 23.04.2025 / 18:00

Resumption of Student Loan Collections: What Borrowers Need to Know

The Department of Education is set to resume collections on defaulted federal student loans, affecting millions of borrowers. Starting May 5, collections will begin, which may involve wage garnishments and withholding of tax refunds and Social Security benefits for those in default. This initiative has raised concerns among borrowers, with experts warning that such actions could slow down the economy. Education Secretary Linda McMahon emphasized the need for accountability among borrowers, stating that the agency aims to provide necessary information and support as it transitions back to normal collections. As the government implements these changes, borrowers are urged to take swift action to manage their debts.
NPR, Axios, MSNBC News, CNN, TheGrio, The Coloradoan, WSJ, ABC News, AP News, The New York Times