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Department of Education to Restart Involuntary Student Debt Collection After Pandemic Pause

Banking And Finance

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The Department of Education (DoEd) is gearing up to restart involuntary debt collection for its defaulted federal student loan portfolio after pausing collection during the COVID-19 pandemic, the department announced Monday.

The Office of Federal Student Aid (FSA) will officially resume collections of its defaulted federal student loan portfolio on May 5 — until then, borrowers in default will receive emails from FSA making them aware of the change and offering information and assistance. By summer, FSA will send notices before beginning administrative wage garnishment, according to DoE.

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