by Shauneen Miranda, Kentucky Lantern
April 21, 2025

WASHINGTON — The U.S. Department of Education said Monday that it will resume collections May 5 for defaulted federal student loans.

After pausing during the early weeks of the COVID-19 pandemic, the agency has not collected on defaulted loans in over five years. More than 5 million borrowers sit in default on their federal student loans, and just 38% of borrowers are current on their payments, the department said.

“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” U.S. Secretary of Education Linda McMahon said in a statement Monday.

During last year’s presidential campaign, President Donald Trump criticized his predecessor and successor, President Joe Biden, for his efforts to erase student debt. McMahon resumed that line of attack Monday, blaming Biden’s administration for unreasonably raising borrowers’ expectations of forgiveness.

“The Biden Administration misled borrowers: the executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear. Hundreds of billions have already been transferred to taxpayers,” McMahon said.

She added that “going forward, the Department of Education, in conjunction with the Department of Treasury, will shepherd the student loan program responsibly and according to the law, which means helping borrowers return to repayment — both for the sake of their own financial health and our nation’s economic outlook.”

The department said the Office of Federal Student Aid will restart the Treasury Offset Program, which the U.S. Treasury Department administers, on May 5.

The Education Department statement said all borrowers who are in default will get emails over the next two weeks “making them aware of these developments and urging them to contact the Default Resolution Group to make a monthly payment, enroll in an income-driven repayment plan, or sign up for loan rehabilitation.”

The department said the Office of Federal Student Aid will “send required notices beginning administrative wage garnishment” later this summer.

More than 42.7 million borrowers owe more than $1.6 trillion in student debt, according to the department. 

The administration claims that “instead of protecting responsible taxpayers, the Biden-Harris Administration put them on the hook for irresponsible lending, pushing the federal student loan portfolio toward a fiscal cliff.” 

Kentucky Lantern is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Kentucky Lantern maintains editorial independence. Contact Editor Jamie Lucke for questions: info@kentuckylantern.com.

The post U.S. Education Department to restart defaulted student loan collections appeared first on kentuckylantern.com

Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.

Political Bias Assessment: Center-Right

The content primarily reflects a Center-Right political bias, as it focuses on the resumption of federal student loan collections and criticizes the previous administration’s attempts to implement student debt forgiveness. The statements made by U.S. Education Secretary Linda McMahon highlight a commitment to fiscal responsibility and emphasize the idea that taxpayers should not bear the burden of student loan defaults. Additionally, the language used aligns with conservative viewpoints that prioritize personal responsibility and criticize government overspending. The framing of the Biden administration’s actions as misleading further underscores a critical stance typical of a Center-Right perspective.