Department of Education to Resume Student Loan Collections – One America News Network

OAN Staff Makenna Blackman
2:13 PM – Wednesday, April 23, 2025

The Department of Education is set to resume the collection of federal student loan debt after a pause that lasted more than five years, a policy initiated during the Biden administration.

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The department’s recent statement revealed that this action will affect over five million borrowers, in addition to four million others reported to be delinquent on their payments.

Student loan collections were initially suspended in March 2020 amid the COVID-19 pandemic to provide relief to current students and recent graduates—a decision that received criticism.

.@PressSec: “No student loan has been referred to collection since March of 2020. That comes to an end. On May 5th, the @usedgov will resume involuntary collections for borrowers with defaulted federal student loans.” pic.twitter.com/hpZOtVWG1U

— Rapid Response 47 (@RapidResponse47) April 22, 2025

This development occurs as the Trump administration seeks to overhaul the Department of Education (DOE). The president has instructed Secretary of Education Linda McMahon to initiate steps toward its closure.

Borrowers in default should expect an email from the DOE’s federal student aid office within the next two weeks, which will include wage garnishment notices by mid-summer specifically for those in default.

The new policy is projected to be implemented no later than May 5^th.

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