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Capital & Main
Capital & Main
Kalena Thomhave

Student Debt Collections Resume, Targeting Borrowers Least Able to Pay

Laurie Rubin/Getty Images.

After a pandemic-related pause of more than five years, the U.S. Department of Education has resumed debt collections on student loans in default, affecting more than 5 million borrowers.

When a federal student loan goes into default, the full balance becomes immediately due, and the government can garnish wages and seize federal payments to collect what’s owed.

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