OAN Staff Makenna Blackman
2:13 PM – Wednesday, April 23, 2025
The Department of Education will officially resume collecting federal student loan debt after it was halted for over five years, a policy which began under the Biden administration.
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In a statement released earlier this week, the department said this move will impact more than five million borrowers, along with an additional four million individuals reported to be behind on their payments.
Student loan collections were first paused in March 2020 during the COVID-19 pandemic to offer relief to active students and college graduates– a strategy which many have criticized.
This comes as the Trump administration is working to dismantle the Department of Education (DOE). The president has ordered Secretary of Education Linda McMahon to begin the process of shutting its doors.
All borrowers in default can expect an email from the DOE’s federal student aid office within the next two weeks, with wage garnishment notices by mid-summer — specifically for those in default.
The new policy is expected to take effect no later than May 5th.
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