Five million borrowers are in default
If you are in default with your student loans, you may be hearing from the Department of Education very soon. Beginning May 5th, the Department of Education began a collection process on federal student loans that are 270 days behind without a payment.
Several media outlets, such as CBS News, report that five million borrowers are in default and are at risk of having their wages garnished, facing liens, and more.
In March of 2020, President Trump paused all payments on student loans during the COVID-19 pandemic to help relieve Americans who were out of work. Afterward, the Biden Administration extended the loan repayment pause several times as it attempted to eliminate student loan debt for all borrowers, but faced many hurdles in doing so. The Biden administration was successful in eliminating student loans for a select few borrowers.
