Fox 5 New York
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5.3M in default as U.S. resumes federal student loan collections
Posted
April 23, 2025
Views
26,246
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April 23, 2025
26,246
358
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2:47Now PlayingThe Trump administration is set to resume involuntary student loan collections as early as May 5, ending a five-year pause in collection efforts that began during the pandemic. According to the Department of Education, borrowers in default may face wage garnishment, withheld tax refunds, and even reduced Social Security income. FOX 5’s Kendall Green breaks down what this means for student loan holders and what financial experts recommend doing now to avoid collections.
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