The latest on default student loans.
Default Student Loans Now Sent To Collections
The Education Department will resume collections on defaulted federal student loan debt this week, ending the pandemic’s pause on payments and reporting them to collection agencies.
More than 5 million borrowers are in default and now at risk of damaging their credit scores.
The Education Department’s Office of Student Aid resumes its Treasury Offset Program to collect debt by garnishing federal and state payments, such as tax returns or social security payments.
If you have defaulted on your student loans, then you are urged to contact the Education Department’s Default Resolution Group and “make a monthly payment, enroll in an income-driven repayment plan, or sign up for loan rehabilitation.”