The Education Department announced Monday student loan collections will restart in May for loans in default, a move that could impact millions of borrowers and end the years-long period of leniency then went into effect under former President Joe Biden.
Read the full story on Forbes: https://www.forbes.com/sites/mollybohannon/2025/04/21/education-department-will-restart-collection-on-defaulted-student-loan-payments/
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Read the full story on Forbes: https://www.forbes.com/sites/mollybohannon/2025/04/21/education-department-will-restart-collection-on-defaulted-student-loan-payments/
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Fuel your success with Forbes. Gain unlimited access to premium journalism, including breaking news, groundbreaking in-depth reported stories, daily digests and more. Plus, members get a front-row seat at members-only events with leading thinkers and doers, access to premium video that can help you get ahead, an ad-light experience, early access to select products including NFT drops and more:
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NewsTranscript
00:00Breaking news, the Department of Education will restart collection on default student loan payments.
00:06On Monday, the department announced it will restart loan collections May 5th,
00:10a move that could impact millions of borrowers.
00:14The department said that there are more than 5 million borrowers who are in default
00:18because they haven't paid a payment in at least 360 days.
00:22In addition, there are another 4 million borrowers who are in late-stage delinquency,
00:28meaning they haven't paid in 91 to 180 days.
00:32The government has not collected defaulted loans since March 2020
00:36when President Donald Trump first halted referring loans to collections during the COVID-19 pandemic.
00:44For more information on loan repayments, go to Forbes.com.