"Restarting collections is something that was going to have to happen eventually. It was a matter of when, not a matter of if."
"It's necessary to restart the collections system following Biden's years of relief."
The Trump administration has officially restarted the collection processes for defaulted student loans, affecting around five million borrowers who may face consequences like wage garnishment or loss of federal benefits if payments are not made. The collection pause, initiated under Trump in 2020, ended after a years-long timeframe without penalties for delinquent borrowers. As federal benefits may be at risk, the Department of Education is sending notifications to affected borrowers. Experts indicate that while immediate garnishment may not occur, consequences will soon follow for non-compliance with payments.
Read at Business Insider
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