Collections Temporarily Delayed
On January 16, 2026, the Department of Education announced that it was temporarily delaying collection of defaulted student loans, but we don’t know how long that pause will last. If your loans are in default when the delay ends, you could face serious consequences, including losing your tax refunds, a portion of your wages, and even some of your Social Security benefits. Unlike other types of debt collection, the government can take these steps without going to court. There is no statute of limitations on collecting federal student loan debts. This means you could face collection actions for debts that are years old.
Take steps now to make sure your loans aren’t in default! If you are in default, act quickly to get out of default and avoid collections.
If you fall behind on your student loan payments, you need to act quickly to avoid defaulting on your debt. If you default on your federal student loan debt, the federal government has powerful tools to collect on the debt. The government may be able to garnish your wages, seize your federal tax refunds, and even take a portion of your Social Security benefits to collect on your student loan debt. In addition, while your loans are in default, you are not eligible for additional federal student aid or other types of federal credit, like FHA and VA mortgages or Small Business Administration loans. If you are in this situation, this does not mean you should give up. There are ways to recover even if you have already defaulted and experienced collection.
You should first understand the potential consequences of default, and then explore various ways you may be able to get out of default. Review the various federal loan cancellation options to see if any apply to you. You also have the right to fight back against debt collection agency harassment or abuse. This includes letting the Department of Education and the Consumer Financial Protection Bureau know of your complaints about collection agencies.
If you have defaulted and are dealing with collections related to your private student loan debt, see our page on private student loan collections.
