The Department of Education announced on Monday that major collections efforts against millions of defaulted federal student loan borrowers will be resuming in a matter of weeks. These efforts will include involuntary collections activities that allow the government to intercept tax refunds, offset Social Security payments, and garnish wages from employment, all without a court order.
The announcement comes as student loan borrowers are facing unprecedented pressures. The repayment system is mired in turmoil, student loan forgiveness is blocked or threatened across several programs, and the department faces severe personnel reductions following mass firings and resignations. Millions of borrowers are already in default, with many more starting to fall behind on their monthly payments — just as economic conditions begin to worsen.
Adam S. Minsky | Forbes