The five-year relief period is over, and defaulted student loan borrowers are left with two options: Pay up or face the consequences.
On Monday, President Donald Trump’s administration officially restarted the process of collecting defaulted student loan payments. This marks the end of a yearslong pause that started under Trump in 2020 and continued under the Biden administration. During the pause, borrowers who were behind on their student loan payments did not face any penalties.
The Department of Education announced two weeks ago that the pause would end and that borrowers who didn’t make payments could eventually face seizure of federal benefits like Social Security, wage garnishment, and hits to their…
