Overview

• Collections were paused in March 2020 due to the pandemic and extended under multiple administrative actions but will fully resume next month.
• Roughly 5 million borrowers are currently in default, with an additional 4 million in late-stage delinquency, according to the Department of Education.
• Borrowers will receive a 65-day notice before tax refund or benefit offsets and a 30-day notice before wage garnishment begins.
• Options to avoid enforcement include entering repayment agreements, rehabilitating loans, consolidating debt, paying in full, or filing valid objections.
• Income-driven repayment plans remain available for borrowers not yet in default, allowing payments based on disposable income.