Education Dept. To Resume Student Loan Collections On May 5: ‘Mass Forgiveness Is Over’

Education Dept. To Resume Student Loan Collections On May 5: ‘Mass Forgiveness Is Over’

The U.S. Department of Education will resume federal student loan collections on May 5, ending a pause in place since March 2020.

“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” said Secretary Linda McMahon. Collections aim to reduce default rates and hold borrowers accountable.

Over 5 million are in default, with nearly 10 million expected soon. FSA will relaunch Treasury Offset and wage garnishment. Borrowers are urged to act now, with new tools like Aiden and the Loan Simulator available. “There will not be any mass loan forgiveness,” the Department emphasized.

 

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VIA: WTOL 11