In October 2023, Congress mandated that borrowers begin repayment after the Biden administration failed to extend the pause on collections.

Critics, including the Student Borrower Protection Center, have labeled the resumption of collections as 'cruel,' arguing it will exacerbate economic challenges for working families.

The end of the pandemic-era pause on federal student loan collections has left approximately 5.3 million borrowers in default, marking a significant shift in the student loan landscape.

Despite the cancellation of over $183.6 billion in student loans under President Biden's administration, Education Secretary Linda McMahon has criticized the previous administration's debt forgiveness approach.

Borrowers in default will receive notifications advising them to either pay their bills, enroll in an income-driven repayment plan, or sign up for loan rehabilitation.

The Education Department plans to initiate administrative wage garnishment this summer, allowing the federal agency to collect from borrowers' wages.

The collection process will use the Treasury Department's offset program, which deducts payments from government benefits like tax refunds for those with overdue debts.

As borrowers attempt to reintegrate loan payments into their budgets, many report financial strain and difficulty navigating the repayment system, exacerbated by a lack of institutional support.

Layoffs at the Federal Student Aid office have complicated borrowers' ability to manage their loans effectively, leaving many struggling to understand their repayment options.

The ongoing conversation about student debt raises questions about the fairness and viability of the current system, prompting discussions on potential reforms in higher education financing.

Former President Trump has criticized President Biden's leniency towards student loans, indicating that the era of potential loan forgiveness has ended.

The Biden administration's proposed SAVE repayment plan, aimed at reducing payments to 5% of discretionary income for undergraduate loans, is now in jeopardy due to legal challenges.