Topline
The Education Department announced Monday student loan collections will restart in May for loans in default, a move that could impact millions of borrowers and end the years-long period of leniency then went into effect under former President Joe Biden.
Key Facts
The department said in a press release Monday collections of student loans that are in default will resume on May 5.
The resumption in collecting defaulted loans will protect “taxpayers from shouldering the cost of federal student loans that borrowers willingly undertook to finance their postsecondary education,” according to the release.
The government has not collected defaulted loans since March 2020, when Biden halted referring loans to collection during the COVID-19 pandemic.
This story is breaking and will be updated.
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Further Reading
Student loans in default to be referred to debt collection, Education Department says (Associated Press)