After a five-year suspension, the Trump administration has restarted forced collections on federal student loans in default, allowing wage garnishment for borrowers. This action marks the official end of pandemic-era relief that began with a payment pause in March 2020. The Biden administration extended this freeze multiple times while implementing a new repayment plan called SAVE, which is currently stalled in legal proceedings. Consequently, borrowers who are defaulting face credit rating issues, and uncertainty looms over repayment strategies and obligations amidst ongoing changes in the student loan landscape.
After a five-year pause, the Trump administration has resumed forced federal student loan collections, impacting millions already in default and affecting credit scores adversely.
The Biden administration's overhaul of income-driven repayment plans faces legal hurdles, leaving many borrowers unsure about their financial obligations and repayment strategies moving forward.
Collection
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