The Trump administration says it will soon resume collections on defaulted student loans for the first time in five years, raising questions and anxieties for millions of borrowers across the country.
The Department of Education announced Monday that its office of Federal Student Aid will resume collections on May 5, meaning it can start taking funds out of borrowers’ tax refunds, Social Security benefits and — eventually — wages.
“Together, these actions will move the federal student loan portfolio back into repayment, which benefits borrowers and taxpayers alike,” Education Secretary Linda McMahon said.
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