The five-year pause on federal student loan collections is ending. Starting May 5, 2025, the Department of Education will once again deploy its full arsenal of collection tools against defaulted loans—affecting millions of Americans already struggling with inflation and economic uncertainty. For borrowers in default, the machinery of collection is about to restart with potentially severe consequences for their financial health. Here’s what’s happening, who’s affected, and what options remain for those facing garnishment. The Hard Numbers Behind the Collections Restart The Department of Education will immediately target approximately 5.3 million borrowers currently in default (defined as 360+ days without … Continue reading Student Loan Collections Restart May 5 Threatens 5.3 M with 15 % Wage Garnishment