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Summary
The U.S. Education Department will begin collecting payments for student loans in default, starting May 5, with involuntary collections through the Treasury’s offset program, potentially affecting millions of borrowers. With over 5 million borrowers currently in default and 4 million more expected soon, the department emphasized that no mass loan forgiveness will occur, following previous failed efforts during the Biden administration. Education Secretary Linda McMahon stated the department will manage the program responsibly, focusing on helping borrowers return to repayment for their financial health and the economy.
