WASHINGTON – The pandemic-era pause on aggressive student loan collections is coming to an end for borrowers in default.
On April 21, Education Secretary Linda McMahon confirmed that beginning May 5, the federal government will restart involuntary debt collection for individuals who have fallen behind on their student loans.
In just two weeks, wage garnishments will resume for borrowers who have been overdue for 270 days or more. Additionally, the government plans to recover funds from federal sources like tax returns and Social Security payments.
This move signals the final stage in restoring the full operations of the federal student loan system, which had been largely suspended since the onset of the COVID-19 pandemic.
Federal collections have been on hold since March 2020. Although monthly loan payments restarted in fall 2023 during former President Joe Biden’s administration, the toughest enforcement measures—such as paycheck and benefits garnishments—were still postponed, even as President Donald Trump began his second term.