The Department of Education will resume collecting on defaulted federal student loans starting May 5th, impacting over 5 million borrowers. This ends a five-year pandemic-era pause. The Treasury Offset Program will restart, garnishing federal and state payments. The move coincides with the Trump administration's efforts to dismantle the Education Department and comes as borrowers face limited access to affordable repayment plans due to legal challenges surrounding the SAVE plan. The department promises a new enhanced income-driven repayment plan.

Prepared by Emily Rhodes and reviewed by editorial team.