Federal student loan collections resume

The U.S. Department of Education announced on April 21 that its Office of Federal Student Aid (FSA) will resume collection of defaulted federal student loans, which started on May 5, after a nearly five-year pause on collections that began during the COVID-19 pandemic. Borrowers in default could face wage garnishment, tax refund seizures and reduced Social Security benefits. Affected borrowers should have received an email from FSA prior to May 5, making them aware of the developments and providing information about payment options. Visit Studentaid.gov for more information.