This story was produced by The Hechinger Report, a nonprofit, nonpartisan news outlet focused on education.

After a five-year pause, the Trump administration is bringing back financial penalties for the many millions of borrowers who are too far behind on their student loan payments. It’s led to confusion and financial uncertainty.

At least 5 million people are in default, meaning they have failed to make payments on their loans for at least nine months — and millions more are projected to join them in the coming months.

All told, about 43 million federal student loan borrowers owe a total of $1.6 trillion in debt. Starting May 5, those in default face having tax refunds withheld and wages garnished if they don’t start making regular payments.

The Hechinger Report spoke to student loan experts about what to expect and how to prepare, as well as about a separate effort in Congress to adjust how student loans work.

The Biden administration restarted loan repayments in October 2023. That came without any consequences, however, for about a year. But interest, which had also been frozen since the start of the pandemic, has been piling up for some borrowers since the fall of 2023.

A college degree can be a path to long-term financial security, but the process of repaying loans can lead to financial hardship for many borrowers. About half of all students with a bachelor’s degree graduate with debt, which averages more than $29,000. And although average debt tends to be lower for graduates of public universities (about $20,000), close to half of people who attend those schools still leave with debt.

The student loan landscape is likely to change in some way over in the coming months: The Trump administration is expected to push the limits on aggressive collection practices, while Republicans in Congress are determined to adjust repayment options. Here’s what we know about what the Trump administration’s actions mean for student borrowers.

Once you’ve failed to make a loan payment in 270 days, you will probably enter into default. That means, as of May 5, the government can take your federal tax refund and apply it to your debt. Starting in June, the government can also withhold up to 15 percent of any........

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