The Responsible Resumption of Student Loan Collections: A Step Toward Fiscal Accountability
On May 5, 2025, the U.S. Department of Education will resume collections on defaulted federal student loans, ending a five-year pause initiated in March 2020 during the COVID-19 pandemic.
"If you take out a loan, you have to pay it back. It's very simple."@PressSec on @EDSecMcMahon bringing accountability back to student loans.
— Erika Donalds (@ErikaDonalds) April 22, 2025
87% of Americans don’t have student loans. They should not be forced to pay the loans of the 13%! pic.twitter.com/fxPIGhzGwc
This decision, championed by Education Secretary Linda McMahon, is a vital step toward restoring fiscal responsibility and protecting taxpayers from shouldering the burden of unpaid loans. With 43 million borrowers owing over $1.6 trillion, and more than 5 million in default, the move ensures accountability while offering borrowers clear pathways to repayment.
I don’t understand the student loan issue.
— John LeFevre (@JohnLeFevre) April 22, 2025
These people invested in themselves, and lost. Or, they were lied to about the value of their degree.
Plumbers shouldn’t bail them out.
pic.twitter.com/DnWBXnbW6F
Some critics are predictably bellyaching, claiming the resumption is too harsh on borrowers struggling financially. These complaints often ignore the generous options such as income-driven repayment plans and loan rehabilitation, as well as the fact that indefinite pauses unfairly shift costs onto taxpayers who never signed up for these loans. Personal responsibility should prevail, and the Department’s approach balances fairness with pragmatism.
The resumption process is being handled transparently and with compassion. The Office of Federal Student Aid (FSA) will notify defaulted borrowers via email and social media, urging them to make payments, enroll in simplified income-driven repayment (IDR) plans, or pursue loan rehabilitation. These measures, including the elimination of annual income recertification for IDR plans, provide manageable options to avoid consequences like wage garnishment, which will begin this summer through the Treasury Offset Program. The Education Department’s data shows nearly 10 million borrowers risk default without action, underscoring the urgency of this policy.
As McMahon emphasized, the Biden administration’s misleading promises of unconstitutional loan forgiveness transferred hundreds of billions in costs to taxpayers. Resuming collections corrects this overreach and aligns with legal and economic realities.
Further details from the Department of Education confirm the necessity of this move. A press release on April 21, 2025, notes that collections are mandated under the Higher Education Act, with due process ensured through ample borrower notifications. Resources on StudentAid.gov guide borrowers toward repayment options, reinforcing the government’s commitment to support during this transition. The Treasury Offset Program, a proven mechanism for recovering owed funds, ensures fairness to taxpayers by collecting debts through tax refunds or benefits. Far from punitive, this policy promotes accountability while offering borrowers every opportunity to avoid default.
Resuming student loan collections is about honoring commitments and safeguarding the federal loan program’s integrity. By providing accessible repayment options and clear communication, the Department of Education is protecting taxpayers and fostering a culture of responsibility. This policy is a win for fiscal discipline, fairness, and a stronger economic future.
Sources:
- The Daily Signal article here
- U.S. Department of Education Press Release, April 21, 2025
- StudentAid.gov resources on loan repayment and default