Trump Administration to resume collections on student loan borrowers in default

The U.S. Department of Education has resumed collections on defaulted student loans after a five-year hiatus, targeting more than 5 million borrowers who have fallen behind payments. With an additional 4 million approaching default, this move aims to recover delinquent debts while addressing the growing burden on American taxpayers. Older borrowers, particularly those over age 65 with fixed incomes, are among those most likely to face financial struggles, potentially harming their credit scores and making it harder for them to secure other loans or housing. Collections will begin via the Treasury Department on May 5, following an outreach campaign to affected borrowers.