Overview
- Over 5 million borrowers are in default, with an additional 4 million delinquent on federal student loans, according to the Education Department.
- Defaults are projected to rise to nearly 10 million borrowers as delinquent accounts surpass 270 days of non-payment in the coming months.
- Borrowers in default face wage garnishment, tax refund interception, and benefit withholding, with garnishments set to begin this summer.
- The Education Department urges borrowers to contact the Default Resolution Group to explore options such as rehabilitation, consolidation, or income-driven repayment plans.
- The restart of collections follows years of pauses and legal challenges to student debt relief, with no further mass forgiveness anticipated under current policies.