They’ve only given a couple of weeks notice 😮Check the first comment

Starting May 5, 2025, the U.S. Department of Education will resume involuntary collections on federal student loans in default, ending a multi-year pause first introduced during the COVID-19 pandemic. About 5.3 million Americans will be affected, facing tax refund seizures, Social Security garnishments, and wage withholdings through the Treasury Offset Program.

This shift follows the Supreme Court’s 2023 ruling that struck down the Biden administration’s broad student loan forgiveness plan. Now, only targeted, slower relief options like income-driven repayment (IDR) plans and Public Service Loan Forgiveness (PSLF) remain available.

Borrowers will receive at least 14 days’ notice before offsets begin. Those in default are urged to quickly explore options like loan rehabilitation, consolidation, or enrolling in IDR plans to avoid garnishments.

Officials emphasized that this step restores legal accountability and protects taxpayer funds but acknowledged the hardship it may cause, especially for low-income borrowers. Financial experts warn that the sudden return of collections could severely impact millions already struggling with basic living costs.

Borrowers are encouraged to contact their loan servicer or visit StudentAid.gov immediately to learn about ways to prevent or minimize offsets.