Collections Have Restarted
On May 5, 2025, the federal government restarted collections on federal student loans that are in default. That means if you haven’t made a payment on your federal student loans in more than 270 days, you could soon 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.
Right now, there are only two ways to get your loans out of default if you can’t pay the debt in full:
- complete a loan rehabilitation, or
- consolidate your loans to get out of default.
The Fresh Start program has ended and is no longer available to get loans out of default.
