U.S. Student Loan Collections to Resume May 5: Millions Risk Wage Garnishment Amid Defaults

The U.S. Department of Education has announced that it will resume collections on student loans that have been in default since 2020, starting May 5, 2025. This action could impact up to 5.3 million borrowers, potentially leading to wage garnishment. The policy aims to enforce financial responsibility among borrowers but arises at a time when many face economic challenges due to housing and affordability crises.