Student Loan Collections to Resume on May 5

On April 21, the Department of Education issued a press release stating that they will resume collection on defaulted student loans starting May 5, with wage garnishment notifications being sent out later in the summer. This comes as the WSJ reports that guaranty agencies will also be able to conduct involuntary collections of Federal Family Education Loan Program loans, which coincides with credit reporting agencies resuming to report late and delinquent student loan payments. Collections on defaulted student loans were paused in March 2020 due to Covid-19, with the pause extended by former President Joe Biden.  

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