Lawsuits to Collect Federal Student Loans Temporarily Paused
Due to the COVID-19 payment pause, most collections on federal student loan debt, including lawsuits by the federal government. The payment pause is ending at the end of August 2023, but the Department of Education has stated that collections on loans that are eligible for the new Fresh Start program will continue to be paused during the Fresh Start period. The Fresh Start period will run until one year after the payment pause ends. See our page on Fresh Start for more information about signing up for this time-limited program.
There is no pause on private student loan debt collection! If you have been sued recently for a student loan debt, it is likely you were sued for a private student loan debt. See our page on private student loan collection lawsuits for more information.
Although lawsuits are not very common in federal student loan collection, they can happen. The government does not file these cases as often because it can easily collect on the debt without a court order.
If you have been sued recently for a student loan debt, it is likely that you were sued for a private student loan debt, but you should talk to an attorney to confirm this. See our page on private student loan debt collection for more information.
What can I do if I have been sued by the federal government for student loan debt?
Do not ignore the lawsuit. If you ignore the lawsuit, it is likely that a default judgment will be issued against you. This means that the government will automatically win and could get a lien on your house, seize money from your bank accounts, and/or garnish your wages. You will likely need to speak with a lawyer to help you respond to a lawsuit to collect on federal student loan debt.
I have a default judgment for federal student loan debt against me. Is there anything I can do about it?
Maybe. If you were not served with the court papers properly, you may be able to ask a court to vacate (overturn) the default judgment. You will likely need a lawyer to assist you with this process.
How can I find a lawyer to help me with a collection lawsuit?
You may be able to hire a lawyer in your area to help you. Depending on your income, you may also qualify for free legal help from your local legal aid organization. See our Find Help page for more information.