As part of her efforts to overhaul the federal education system, Education Secretary Linda McMahon is restoring accountability to the federal student loan system. Beginning May 5, the Department of Education will resume involuntary collections on defaulted federal student loans, ensuring that borrowers honor their commitments and taxpayers aren’t left footing the bill.
Since March 2020, the department has halted collections on defaulted student loans, declaring a pandemic-related pause. As part of the Fiscal Responsibility Act of 2023, borrowers were supposed to resume payments in October 2023. Yet, the Biden administration extended a 12-month “on-ramp” period that lasted until September 2024, shielding delinquent borrowers from collections, wage garnishments, or tax refund offsets, even as many remained in default.
Simultaneously, the Biden administration…
