Education Dept. resumes collecting defaulted student loans in May

The Ministry of Education is preparing to resume groups on the underdeveloped student loans in May for the first time since 2020.

While the first Trump administration has stopped referring federal loans to students to the groups in March 2020 at the beginning of the Covid-19 pandemic, the extended separation prompted the Trump administration officials to worry that the Federal Student Loans “” is heading towards a financial slope if we do not start assembling in the groups, “according to a senior official in the department.

“The result is that the federal government’s loan portfolio continued to grow, and we have a record number of borrowers who are at risk of delinquency or failure to pay.”

The official said only 40 % of borrowers are quick to pay their loans, while the remaining 60 % remain late.

The agency says that the employment discounts in the Ministry of Education did not reach the FAFSA office amid Trump’s discounts.

In general, the official said that there are 4 million borrowers in the phase of delinquency in the late stage of payments, which means that they are between 91 days and 180 days.

Trump administration, [the] The current administration believes that American taxpayers can no longer work as a guarantee of student loans, “a senior official in the department said.” Student loan debts must be paid. “

Likewise, the official said that the agency will put a communications plan to inform the borrowers of their status and encourage them to register in automatic disposal to reduce the number of late borrowers.

Policy enter on May 5, when the Ministry of Education will participate in the Treasury compensation program to start collecting late payments.

The official also said that the Ministry of Education is preparing to join the legislators in the efforts made to reform higher education and the applicable student loans payment system.

“Go ahead, we think that congress has a role that plays in reforming the higher education system that puts students in a position in which they can pay their loan payments,” said a senior official in the ministry. “Therefore, we are looking to work with Congress on their efforts to simplify the payment of loans as well as reduce the costs of the college.”

Partisan legislation in business includes the law of Participation of the Employer, which was presented in Sens.

Representatives Nicole Malekacles, RN.Y, and Skeut Peters, MD, California, submitted legislation in the House of Representatives.

Trump still needs help in Congress in a plan to cancel the education department

President Donald Trump signs an executive order to reduce the size and scope of the education department as well as schoolchildren who sign their own publications during a White House party on March 20, 2025. (Chip Somodevilla/Getty Images)

Nearly 43 million students from students have a federal debt for students, which reach the balance of federal students of $ 1.6 trillion, according to data from the Ministry of Education.

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The announcement of the Ministry of Education comes after the Trump administration revealed plans in March to reform the agency, in harmony with the president’s promises by the president to cancel the impact of the federal government on education “to stop the abuse of your taxpayers’ taxis to implement American youth.”

Nevertheless, President Donald Trump announced that the administration jobs that oversee Pell, student loans and others that provide services for special needs will continue in other agencies.