Student loan collections are set to resume next month following a major announcement from Education Secretary Linda McMahon, who declared an end to sweeping debt cancellation plans.
The Department of Education confirmed that efforts to forgive large portions of student debt have been halted, calling them financially irresponsible and legally unsound. McMahon stated that continuing such programs would place an unfair burden on taxpayers and bypass the legislative process.
Beginning May 5, the government will restart aggressive collection efforts on defaulted loans, including tax refund withholdings, Social Security offsets, and federal wage garnishments. Wage deductions for borrowers in default are expected to follow in the coming months.
More than 5 million borrowers are currently in default, with millions more behind on payments. Officials say the move is aimed at restoring accountability to the system and ensuring federal loan programs remain solvent.
To support struggling borrowers, the department plans to expand awareness campaigns about income-based repayment options and loan rehabilitation programs. McMahon emphasized the need for a balance between enforcement and assistance, urging borrowers to engage with available resources before collections intensify.