The U.S. Department of Education announced Monday that it will resume “involuntary” collections on federal student loans that are in default, ending a years-long pause that began during the COVID-19 pandemic.
Beginning May 5, the department will once again begin seizing tax refunds, federal salaries, and other government benefits through the Treasury Department’s offset program in an effort to recoup payments from borrowers who have failed to repay their student loans.
Wage garnishments will begin after a 30-day warning period.
This move marks a decisive shift in federal policy following years of delays under President Biden, who repeatedly extended the repayment pause and made sweeping, legally questionable promises to erase student loan debt.
According to the Education Department, roughly 5.3 million Americans are currently in default, with that number expected to surge to 10 million in the coming months as reality sets in.
Education Secretary Linda McMahon made it clear that the Trump administration is restoring fiscal accountability after years of what critics have called politically motivated handouts.
“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” McMahon said in a statement.
“The Biden Administration misled borrowers: the executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear.”
The Biden administration’s attempt to cancel as much as $400 billion in student loan debt was struck down by the Supreme Court in 2023, which ruled that such sweeping actions required congressional approval.
Despite the legal rebuke, Biden continued to delay collections, further burdening taxpayers and creating confusion for borrowers who believed their debts might be forgiven.
Now, the Trump administration is signaling that the era of endless pauses and vague promises is over.
Officials argue that holding borrowers accountable is necessary not only for restoring trust in the loan system but also for protecting taxpayers who were left footing the bill under Biden’s failed approach.
Borrowers affected by the return of collections will begin receiving notices within the next two weeks, the department confirmed.
While critics on the left will likely decry the move as harsh, conservatives see it as a long-overdue correction that reintroduces personal responsibility and common sense into a system that had strayed far from both.
This seems unfair. I never asked for my loans to be cleared but I think that is what has happened. On my credit report it shows: DEPTEDNELNET
Last reported Mar 31, 2025
$0
Reported balance
Highest balance
$500
Nice! You’ve paid off 100% of this loan
That shows up 17 times. Now I’m scared. Both my sources of income are Federal. My military retirement pay and my social security. Am I now facing losing them for who knows how long because they are going to just take money and not allow a person to start repayment. I was never paying anything because I chose income-based repayment plan and my income was so low that they said my monthly payment would be $0.00 How can I find out before I get the first garnishment notice?