Student Loan Collections to Resume for Millions in Default, Including Wage Garnishment

Posted on April 22, 2025

Federal student loan collections are set to resume next month for the first time since 2020, with the U.S. Department of Education confirming plans to begin garnishing wages and withholding tax refunds from borrowers in default.

The announcement, made Monday by Education Secretary Linda McMahon, marks the end of a pandemic-era freeze that shielded millions of borrowers from debt collection efforts. Beginning May 5, the department will reinitiate its partnership with the Treasury Department to collect past-due student debt through involuntary means, including the federal offset program and wage garnishment.

Roughly 5.3 million borrowers are currently in default on their federal student loans. An additional 4 million are considered at risk, with their accounts more than 90 days past due. According to department data, less than 40 percent of all borrowers are current on their loans.

Read full story here

Blogs

BJTS 4-17-25

BJTS 4-17-25

Brenda Gilbert, President of the National Dunbar Horace Mann Alumni Association (NDHMAA), along with Reunion Chairperson Deborah Springer Suttlar and Raymond Frazier with Bus Transportation, want to remind everyone that the registration deadline for the upcoming National Dunbar Horace Mann Reunion is April 30th. If you haven’t registered yet or need more information, please contact…

BJTS 4-10-25

BJTS 4-10-25

Kimberly Hayman, founder and executive director of Ashley’s Kloset, an Arkansas 501(c)(3) nonprofit that supports individuals with disabilities and their families, is hosting the annual Boots and Bling Fundraiser. It will take place on Thursday, April 25 from 5 to 9 p.m. at the Red and Blue Events Venue. For tickets and more information, visit…

BJTS 4-3-25

BJTS 4-3-25

Kenya Eddings, Director of the Arkansas Minority Health Commission, highlights the organization’s mission to ensure that all minority Arkansans have access to preventive health care. Their goal is to promote wellness and prevent diseases that disproportionately affect minority communities. In recognition of National Nutrition Awareness Month, the focus this month is on healthy eating. For…

Playlist

Headlines