Collections for defaulted student loans restart for borrowers, ending COVID pause

The Education Department on Monday restarted collecting on defaulted student loans after ending a pause that began during the COVID-19 pandemic.

More than 5 million borrowers have defaulted on their student loans, and the number could double within a few months, per the Trump administration.

“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” Education Secretary Linda McMahon said in a statement, CNBC reported.

The federal government can seize borrowers’ disability benefits, tax refunds, Social Security retiremnt, and paychecks as part of its collection powers on student loans.