Government Goes After Defaulted Federal Student Loans

According to a Department of Education news release, 42.7 million borrowers owe more than $1.6 trillion in student debt.
Government Goes After Defaulted Federal Student Loans
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Anne Johnson
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On May 5, 2025, the Department of Education (DOE), through its Office of Federal Student Aid (FSA), will begin involuntary collection of student loans that are in default. According to the DOE, this collection affects approximately eight million borrowers who are in default. Student loans haven’t been collected since March 2020, including those in default.

What measures will the Department of Education take to collect these funds? And how will it ultimately affect borrowers?

Millions of Borrowers in Default

According to a Department of Education news release, 42.7 million borrowers owe more than $1.6 trillion in student debt.
Anne Johnson
Anne Johnson
Author
Anne Johnson was a commercial property & casualty insurance agent for nine years. She was also licensed in health and life insurance. Anne went on to own an advertising agency where she worked with businesses. She has been writing about personal finance for ten years.