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The U.S. government will resume collecting on defaulted federal student loans on May 5th after a five-year pause. This affects 5.3 million borrowers who defaulted before the pandemic. Collections will include seizing tax refunds, Social Security benefits, and wages. The Department of Education urges borrowers to make payments or enroll in income-driven repayment plans. Options for borrowers include loan consolidation and rehabilitation. Concerns exist about the impact on borrowers struggling financially, especially given the ongoing cuts to the Department of Education.

Prepared by Emily Rhodes and reviewed by editorial team.