Trump Administration Restarts Involuntary Collections on Student Loan Debt

The Department of Education resumed collections on defaulted federal student loans on Monday and reminded colleges and universities of their “shared responsibility” to ensure taxpayers aren’t on the hook for unpaid debts.

Collections had been on pause since March 2020, as a result of the COVID-19 pandemic, and the restart is expected to impact roughly 5.3 million borrowers currently in default on their federal student loans.

“As we begin to help defaulted borrowers back into repayment, we must also fix a broken higher education finance system that has put upward pressure on tuition rates without ensuring that colleges and universities are delivering a high-value degree to students,” Education Secretary Linda McMahon said in a statement.

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