US Education Department to resume student loan collections after 4-year pause, impacting 4 million borrowers

The US Department of Education will resume collections on defaulted federal student loans starting May 5, 2025, ending a four-year pause that began during the Covid-19 pandemic. This move affects nearly 4 million delinquent borrowers, as only 40% of federal student loan holders are current on payments. With student debt totaling $1.6 trillion, the Trump administration emphasizes the need for repayment and broader education reforms, according to statements reported by Fox News.

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