US Education department to resume student loan collections from May 5, affecting millions in default

The US Education Department will restart student loan collections from 5 May, targeting over 5 million borrowers in default. Wage garnishment and benefit offsets will resume after a pause that began during the COVID-19 pandemic. The decision ends years of leniency under Bidens term, whose broader loan forgiveness efforts were blocked in court. Critics warn of confusion, economic distress, and limited support access. The Trump administration says the move restores fiscal discipline and legal accountability.