The Department of Education has confirmed it will restart collection efforts on defaulted federal student loans beginning May 5, 2025, ending a five-year freeze that began in March 2020 amid the COVID-19 pandemic.
Over 5 million borrowers are currently in default, while millions more are nearing delinquency. The agency is preparing to resume enforcement actions, including wage garnishment and benefit offsets, later this summer for borrowers who fail to take action.
Officials say borrowers will soon receive notices outlining their repayment options, including loan rehabilitation and income-driven plans designed to ease the transition back into repayment. Borrowers are being urged to contact the Default Resolution Group to avoid automatic collection measures.
The resumption of collections has sparked concern among some advocacy groups, particularly regarding the potential strain on vulnerable borrowers, including seniors and low-income individuals. Despite the criticism, the department maintains that reinstating repayment is necessary to preserve the long-term sustainability of the federal loan program.
Borrowers are encouraged to act promptly to explore their options and reengage with the system before collections fully resume.