The Trump administration will resume collections on defaulted student loans for the first time in five years, affecting 5.3 million borrowers. Borrowers in default may face wage garnishment and other consequences as collections restart. Options to get out of default include repayment in full, loan consolidation, and loan rehabilitation. The Department of Education is urging borrowers to take action and explore repayment plans to avoid delinquency and default. Borrowers can access resources and support through the Department of Education's website and loan servicers to navigate their student loans.
Source: https://www.npr.org/2025/04/23/nx-s1-5372332/student-loans-default-collection