Education Dept. Set to Restart Student Loan Collections on Defaults

ATLANTA, Ga. (Atlanta News First) – Within the next fortnight, the U.S. Department of Education will start collecting payments from individuals whose student loans have defaulted.

According to the Education Department, over 5 million borrowers are currently in default, and an additional 4 million individuals might find themselves in a similar situation within a few months.

For current students like Georgia State University freshman Ashley, this causes concerns for her future.

She stated, "In the future, my plan is to attend medical school, and I realize that I may need to begin repaying the federal loans even before I complete my degree. This idea frightens me as I'm not sure what it will look like financially."

During the COVID-19 pandemic, federal student loan repayments were put on hold, but now the Education Department is indicating that it’s time to resume making payments once more.

PREVIOUS COVERAGE: When student loans go into default, they get handed over to collections. Below are key points for borrower awareness.

Borrowers informed Atlanta News First that it's not simple for many individuals facing financial hardships in today's economic climate.

"Some individuals have children, while others must look after their families," stated Jordan Dobson, a Georgia State University sophomore.

The Department of Education will begin accepting payment collections from May 5th.

MORE COVERAGE: Students with defaulted loans will be handed over to debt collectors, according to the Education Department.