Student Loans in Default Will Be Sent to Collections Starting May 5, Department of Education Says

Student loans that are in default will go to collections starting May 5. jayk7/Getty Images/CNET Beginning in two weeks, defaulted student loans will be sent to collections, the US Department of Education announced Monday. Borrowers currently in default and hoping for debt forgiveness should take action before collections resume on May 5. "The Biden Administration misled borrowers: the executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear," Secretary of Education Linda McMahon said in the press release. If you're behind on payments, it's important to reach out to your lender for options. Lenders can report loans as delinquent after they're 90 days past due, which can damage your credit score. Loans that are 270 days past due go into default, which comes with even more severe consequences. "It's only defaulted loans that are at risk of wage garnishment, tax refund offset, Social Security garnishment and collection co ... Read full article.