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?