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Department of Education Resumes Federal Student Loan Collections After Four-Year Pause

Diverse: Issues in Higher Education

Department of Education announced this week that its Office of Federal Student Aid (FSA) will resume collections on defaulted federal student loans beginning Monday, May 5, 2025, ending a pause that has been in effect since March 2020. million borrowers owing more than $1.6 The book is scheduled to be released in September 2025.

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Chaos and Confusion: The State of Student Loans

Diverse: Issues in Higher Education

It’s been an incredibly challenging and chaotic year in student loan space,” said Persis Yu, deputy executive director and managing counsel at the Student Borrower Protection Center, a nonprofit organization working to eliminate student debt. The debt burden is not distributed equally among students.

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When We Defund Education, We Defund Teacher Diversity

Diverse: Issues in Higher Education

However, that progress was halted when a higher court lifted the Temporary Restraining Order (TRO), allowing the administration to pause funding once again. A district judge ruled in our favor, ordering the reinstatement of the grants. The damage is already being felt.

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Administrative Forbearance for Student Loans

Student Loan Planner

Federal student loan borrowers have access to a new income-driven repayment plan, the SAVE plan. Instead of billing borrowers an incorrect amount, servicers tend to use an administrative forbearance instead. Unfortunately, servicers have had enormous problems calculating what payments should be under that plan.

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Student Loans Relief Until May 2022

College Aid Consulting Services

College students get Federal student loan relief until May 2022. The current administration extended a student loan moratorium that has allowed families to put off debt payments during the pandemic. Payments on Federal student loans will be paused through May 1, 2022.

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TICAS Policy Agenda Tackles the Flaws in the Higher Ed System

Diverse: Issues in Higher Education

Recommendations include doubling the maximum Pell Grant, reforming the student loan system to protect borrowers, and ensuring that public benefit programs, like the Supplemental Nutrition Assistance Program (SNAP) or Temporary Assistance for Needy Families (TANF), are reformed to support a student’s journey through higher education. “If

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For Some Borrowers, the Student Loan Payment Pause Will Last Until At Least 2025

Student Loan Planner

The payment pause was extended numerous times under two presidential administrations.