A month before student loan payments are set to resume, a federal appeals court has reinstated a rule prohibiting student loan guaranty agencies from charging collection fees from defaulted borrowers who quickly resume paying.
The rule was finalized by the Trump administration in 2019. It blocked guaranty agencies that administer federally backed student loans made before 2010 from recovering “collection costs” from borrowers who defaulted but took steps to repay or rehabilitate their loans in a timely manner.
