Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
In less than a week, millions of student loan borrowers who have not been keeping up with their payments will face forced collections, meaning their wages, Social Security and tax refunds could all suffer.
The resumption of payments will impact more than 5 million borrowers who are currently in default, the Education Department said, adding that another 4 million borrowers are late in making payments. It ends a years-long pause in forced collections that began during the coronavirus pandemic.
As of May 5, defaulted borrowers will become subject to wage garnishment to collect their outstanding balances.
Student Loans: What Resumption of Payments Means for Taxes, Social Security
