President Trump is resuming collections on defaulted student loans for the first time since 2020, signaling the end of pandemic relief measures. The Department of Education announced that beginning May 5, borrowers will face significant consequences, including federal benefit withholding, if they remain in default. Education Secretary Linda McMahon emphasized the Department's commitment to enforcing repayment obligations for both borrowers' financial health and the overall economy. Over the next two weeks, defaulted borrowers will receive guidance on options to rectify their loan status before involuntary collections begin.
'Going forward, the Department of Education, in conjunction with the Department of Treasury, will shepherd the student loan program responsibly and according to the law...' Education Secretary Linda McMahon.
'Borrowers will soon be subject to the consequences of default including withholding tax refunds and a percentage of a borrower's Social Security benefits.'
'Since March 2020, the Department has not collected on defaulted student loans or enforced the consequences of defaulting as part of its pandemic relief measures.'
'The Education Department said that over the next two weeks, it will send emails to defaulted borrowers with options to make plans to get out of default.'
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