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Student Loan Collections to Resume May 5, Ending COVID-Era Pause

The Education Department will resume student loan collections May 5, ending a pandemic pause and putting millions of defaulted borrowers at financial risk.

Clay Cane
April 23, 2025

Reading Time: < 1 minute

According to the Associated Press, beginning May 5, the Education Department will resume collecting defaulted student loans through the Treasury Department’s offset program, which withholds tax refunds, federal salaries, and benefits.

Borrowers may also face wage garnishment after 30 days’ notice. This move ends a COVID-era pause on collections in place since March 2020.

The U.S. Department of Education building is seen in Washington, Tuesday, Dec. 3, 2024. (AP Photo/Jose Luis Magana)

About 5.3 million borrowers are currently in default, with millions more at risk. Advocates criticize the policy as harsh and confusing, citing frequent policy shifts between administrations.

Some borrowers struggle to understand repayment options, especially after recent court rulings disrupted income-driven repayment plans.

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Clay Cane is an award-winning journalist, writer, radio host, and political commentator. A graduate of Rutgers University with a degree in African-American Studies, his work on race, culture, and politics have appeared in national publications, including the Washington Post, CNN, and The Grio. Clay is a regular political commentator on MSNBC. Twitter: @claycane