US student loan collections resume: here’s what you need to know

Federal government restarted collecting on defaulted loans, ending a five-year pause that began during Covid

The federal government resumed collecting on defaulted student loans on Monday, ending a five-year pause that began during the Covid-19 pandemic.

The Department of Education says federal student loan borrowers who fail to pay on time could damage their credit scores and even have their wages garnished, their tax refunds seized, and even see reductions in social security benefits beginning on 5 May.

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