The U.S. Department of Education announced it will resume collecting on defaulted federal student loans starting Monday, May 5, ending a pause that began in March 2020.

The department’s Office of Federal Student Aid (FSA) said the restart of collections aims to protect taxpayers from bearing the cost of loans that borrowers willingly took out for higher education. Officials emphasized the move will be accompanied by a communication effort to help borrowers understand their repayment options and how to get out of default.

“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” said U.S. Secretary of Education Linda McMahon in a statement. She criticized the previous and current administrations, stating that the executive branch lacks the authority for widespread debt cancellation.

According to the Department of Education, 42.7 million borrowers owe over $1.6 trillion in student debt. Of those, more than 5 million have not made a payment in over 360 days and are in default, with an additional 4 million in late-stage delinquency. The department projects that nearly 10 million borrowers could be in default within months, representing almost 25% of the federal student loan portfolio. Currently, only 38% of borrowers are in repayment and current on their loans.

The FSA will restart the Treasury Offset Program, which allows the government to withhold payments like tax refunds to collect on defaulted debt. Borrowers in default will receive email notifications over the next two weeks with information on making payments, enrolling in income-driven repayment plans, or pursuing loan rehabilitation. Administrative wage garnishment is expected to begin later this summer.

The department will also allow guaranty agencies to resume involuntary collection activities for loans under the Federal Family Education Loan Program.

The FSA said it is committed to providing borrowers with clear information about repayment options. Over the next two months, a communication campaign will utilize emails and social media to remind borrowers of their obligations and provide resources such as a new Loan Simulator, an AI assistant named Aiden, and extended call center hours. An improved income-driven repayment (IDR) process is also planned to simplify enrollment and eliminate the annual income recertification requirement.

The department intends to collaborate with states, colleges, financial aid administrators, and other stakeholders to emphasize that borrowers, not taxpayers, are responsible for repaying their loans. Officials stated there will be no mass loan forgiveness.

Information for borrowers seeking to get out of default is available at StudentAid.gov/end-default.