Borrowers in default could see their tax refunds or other federal benefits withheld once collections resume. J. David Ake/Getty Images The Education Department will resume collecting on defaulted student loans early next month, restarting a system that’s been on hold since spring 2020, the agency announced Monday. Starting May 5, the department will withhold tax refunds
A day after White House officials said the Education Department would administer the student loan program, President Donald Trump announced that the Small Business Administration would be taking over the $1.7 trillion portfolio. He told White House reporters that the move would happen “immediately,” though he didn’t say how that process would work. Currently, federal law
Larry, 60, graduated from law school in 1990 with just over $68,000 in student debt. Due to scholarships — along with Pell Grants from his undergraduate education — Larry, who requested his last name be withheld for privacy, was able to finish his higher education with what he said was a manageable balance at the