The Trump administration is ending the period of leniency that was granted for student loans during the pandemic, and loans will begin to be sent to debt collection. With the grace period ending next month, the Education Department will start collecting student loans that are in default and possibly garnish wages for borrowers. About 5.3 million borrowers are currently in default, according to The Associated Press. 

What happened with student loans under Joe Biden?

The Education Department attempted to forgive millions of loans during Joe Biden’s presidency, but the courts never allowed the effort to succeed. Still, the government hasn’t referred any federal student loans—including those in default—for collection since March 2020.

When will the Education Department start collecting payments on default loans?

The Education Department plans to start collecting on default loans beginning May 5. The department will make the collection through the Treasury Department’s offset program, which can deny tax refunds, federal salaries and other benefits to people who owe money to the government. Borrowers in default will be given a 30-day notice before the government begins garnishing wages.

“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” Education Secretary Linda McMahon said in a statement, according to the AP.

However, advocates for student-loan borrowers are speaking out against the Education Department.

“This is cruel, unnecessary and will further fan the flames of economic chaos for working families across this country,” Mike Pierce, executive director of the Student Borrower Protection Center, said, per the AP.

According to the Education Department, fewer than 40% of all borrowers are staying up-to-date with their payments, while 4 million people are between 91 and 180 days late. The department has warned borrowers that failing to make payments will result in collection and negatively impact their credit scores.