As federal student loan collections resume, what options do borrowers have?

Loan Hub
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8 Video Views·May 4, 2025
According to the Education Department currently, more than five million borrowers are delinquent, with an additional four million potentially facing the same fate in the coming months. The forced collections on federal student loans in default resume after a five-year reprieve during the pandemic.
on federal student loans
on monday. So this mornin
your options if you find
and how the change is imp
the board. This was sarah
daughter snuggled on her
work. I worked two jobs a
kids full time. Um, their
last year. It was really
you're determined, you pu
in Hampton went back to s
and make more money as sh
in july. She anticipates
hear 100 K. Like that's a
a lot of money. She now j
other people with student
themselves in unique situ
misconception that borro
and they do, but they, th
to be affordable. Scott K
advocate for the State Co
for Virginia. He works wi
Some that have applied fo
but are stuck in processi
in defaults before the pa
newly in default. The Edu
that more than five millio
default and four million
same position in a few mo
hit home until they get t
collections on federal st
starts again after a five
they do something, they'r
collections and they're g
offset, which can include
garnishing their wages, g
So what can you do now? T
says you have three optio
or consolidation. But fir
loan servicer has your cu
mean, I don't think any s
the same loan servicer th
of the pandemic. You can
at student aid dot gov al
that shows repayment plan
length. As you're figurin
me, he meant everything t
including if they submit
screenshot of it because
down the line, it makes i
us to work, work through
situation is different an
to. She says the conversa
her path towards paying d
about it as paying it off
you have less interest ra
the best thing I would do
so personal, you need to
right for you in your sta
But folks, this is really
iceberg of this conversat
I'll have more details on
your future finances, you
and the difference betwee
