The Department of Education will resume collecting on defaulted federal student loans starting May 5th, impacting millions of borrowers. This includes wage garnishment after a 30-day notice. The move, ending a pandemic-era pause, has drawn criticism from advocates who cite borrower confusion and economic hardship. Around 5.3 million borrowers are currently in default, with another 4 million significantly behind on payments. Options like loan rehabilitation are available to avoid wage garnishment, but navigating the process is proving challenging due to recent policy changes and staffing shortages at the Federal Student Aid office.

Prepared by Christopher Adams and reviewed by editorial team.