By UPI.com
The federal government plans to resume collections on defaulted student loans for the first time in more than five years, starting next month.
The U.S. Department of Education announced Monday that its Office of Federal Student Aid will require borrowers, currently in default, to resume repaying their student loans, beginning May 5th. The department has not collected on defaulted loans since March 2020, at the start of the COVID-19 pandemic.
According to the Trump administration, 42.7 million borrowers owe more than $1.6 trillion in student debt, and more than 5 million borrowers have not made a monthly payment in more than 360 days.
“Only 38% of borrowers are in repayment and current on their student loans,” according to the department. “Most of the remaining borrowers are either delinquent on their payments, in an interest-free forbearance or in an interest-free deferment.”
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