04/23/2025
URGENT: 5 million student loan borrowers face mandatory collections starting May 5
The U.S. Department of Education will resume collections on defaulted federal student loans, including referring borrowers to debt collectors. This includes the Treasury Offset Program, which can withhold payments from tax refunds, Social Security benefits, and potentially wages. This is the first time collections have been resumed since March 2020, when the COVID-19 pandemic led to a pause in payments and interest accrual.
Default means borrower is at least 270 days without a payment.
Here's a more detailed explanation:
📌Collection Pause Ended:
The COVID-19 payment pause, extended by the Biden administration, ended in October 2024.
📌Fresh Start Program Ended September 2024:
A program called Fresh Start was implemented to help borrowers quickly get out of default before collections resumed.
📌May 5th Restart:
Collections will resume on May 5th, affecting millions of borrowers in default, according to the Education Department.
📌Collection Methods:
This may include withholding payments from tax refunds, Social Security benefits, and potentially garnishing wages, according to the Education Department.
📌Credit Reporting:
Defaults will now be reported to credit agencies, impacting borrowers' credit scores,
Official announcement can be found here:
https://t.ly/dptofedpressrelease
Significant Problems Actions Cause:
✔️Dpt of Ed has been gutted
✔️Borrowers confused about status, ✔️servicers confused about process
✔️Borrowers in legal limbo
✔️Call centers will be overwhelmed
Awareness of Negative Impacts
✔️Financial
✔️Credit
✔️Home ownership and other purchase
Ways to Get out of Default
✔️Pay in full
✔️Enroll in IDR program
✔️Loan consolidation
✔️Rehabilitation.
IDR & PSLF Under Attack: What You Need to Know & How to Fight Back! - Watch the replay https://t.ly/Wy13q
⚠️ Thousands of borrowers are being impacted by miscalculations, system errors, and sudden rule changes. DO NOT wait until it’s too late!
📌 Take these critical steps NOW:
✔️ Log in to your studentaid.gov account.
✔️Save & screenshot everything in your StudentAid.gov account.
✔️ Compare past and current records—has your payment count changed?
✔️ Report discrepancies immediately! File a complaint and demand corrections.
Need help taking action? The Borrower Complaint & Advocacy Guide walks you through every step, including:
✔️ Where & how to file complaints to get your payments corrected
✔️ Pre-written scripts to use when contacting the Department of Education
✔️ How to document & protect your loan history
✔️ Legal options if your payments are wrongly denied
📥 Download your copy now: https://payhip.com/b/DcPVx