Heads Up, America: Starting today, the Trump administration is moving to put millions of defaulted student loans into collections.
- May 5
- 1 min read
Heads Up, America:
Starting today, the Trump administration is moving to put millions of defaulted student loans into collections — meaning your wages, tax refunds, or even federal benefits could be seized to repay what you owe.
The Department of Education says about 5 million borrowers are already in default, and millions more could follow. For many, payments haven't been made since the pandemic pause.
At a time when prices are high and uncertainty looms, falling into collections could mean lower credit scores, wage garnishment, and yet another hit to already-tight budgets.
Stay informed. Check your loan status. Explore options before collections begin.
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