Federal student loan collections resumed on May 5 after a five-year pause due to pandemic-related relief. This resumption signals a significant policy change under the Trump administration, reversing many of the borrower relief initiatives introduced during the Biden administration. From aggressive collection tactics against borrowers in default to the potential garnishment of wages and social security benefits, the new administration has changed the student loan landscape. Approximately 43 million Americans who hold federal student loans are affected, with concerns over the impact of increased defaults and financial burdens.
For millions of Americans, this marks not only the return of financial obligations, but the beginning of a significant transformation in the way student loans are administered.
With Trump back in office, many of those policies have been reversed, and borrowers in default are once again subject to aggressive collection tactics.
Collection
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