05/16/2025
According to Time, on May 5, 2025, the Department of Education will restart student loan collections – including wage garnishments and tax refund seizures – after a 5-year pause. The return of stringent collections, brought back under the Trump Administration, potentially affects millions of consumers facing financial hardship while legal battles and political uncertainty complicate affordable repayment options.
Here is what student borrowers should know about involuntary collections ahead of debt collections restarting.