Education Department to resume collections on defaulted federal student loans for first time since 2020

The Department of Education is poised to resume collections on defaulted federal student loans in May for the first time since 2020. While the first Trump administration paused referring federal student loans to collections in March 2020 at the onset of the COVID-19 pandemic, the extended lapse has prompted Trump administration officials to worry that the federal student loan portfolio is "headed toward a fiscal cliff if we don't start repayment in collections," according to a senior department official. "The result has been that the federal government student loan portfolio has continued to grow, and we've got a record number...