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Trump administration to resume collections on student loan borrowers in default
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U.S. Secretary of Education Linda McMahon, during a cabinet meeting at the White House in Washington, D.C.. Al Drago/ABACA via Reuters hide caption
toggle caption Al Drago/ABACA via ReutersAfter a five-year hiatus, the U.S. Department of Education says it will begin resuming collections of defaulted student loans on May 5.
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Of the more than 42.7 million student loan borrowers in the U.S., who owe a collective $1.6 trillion, the department says that more than 5 million have not made a payment in the past year. That number is expected to grow as an additional 4 million borrowers are approaching default status.
"American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies," U.S. Secretary of Education Linda McMahon said in a statement.
The department said it will begin notifying borrowers who are in default via email over the next two weeks, urging them to make a payment or to enroll in a repayment plan, and referring them to a government website providing information on how to do so.