This week, the Department of Education announced that on May 5 it will begin collecting on defaulted student loans. This will be the first time since March 2020 that borrowers who have either chosen not to or been unable to make their student loan payments will once again face significant financial consequences for their delinquency.

Borrowers in default will be subject to involuntary collection efforts, including wage garnishment, the withholding of pension benefits and tax refunds, and negative credit reporting. These actions can damage credit scores, limiting borrowers' ability to buy or rent a home, take out a car loan, or secure employment.

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This change will affect a broad swath of borrowers. More than 5 million are already in default, and another 4 million are in late-stage delinquency — that is, they are likely to default in the........

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