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Education Department to restart collections on defaulted federal student loans

4 61
22.04.2025

The Department of Education announced Monday it will restart collections on defaulted federal student loans on May 5, including potentially garnishing wages for millions of workers.

The federal agency said more than 5 million borrowers have been in default — not making monthly payments — for more than year and in some cases for more than seven years.

Defaulted student loans have not been collected since March 2020, when they were paused amid the economic upheaval at the start of the........

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