Federal government set to begin collecting defaulted student loan payments

RIVERSIDE, Calif. (KABC) -- After years on pause, the Department of Education's Office of Federal Student Aid will resume collections on defaulted student loans starting May 5, potentially affecting more than 5 million borrowers nationwide.

Among them is La Shanna Mason of Riverside, who spent decades attending college off and on while raising a family and working. She relied on student loans to continue her education.

"Right now, I can't repay them due to unemployment," Mason said. "But they do make it affordable if you turn in your income information. They'll try to work with you."

The pause on collections began during the COVID-19 pandemic as part of broader relief efforts for student loan borrowers. But the Trump administration announced it will lift that pause next week, raising concerns among advocates.

"These folks are going to find themselves in additional financial hardship," said Sabrina Calazans, executive director of the Student Debt Crisis Center. "We're very concerned to see how people will be impacted by this decision."

Borrowers in default may face wage garnishment, tax refund seizures or other collection actions, Calazans said. She urged those affected to visit StudentAid.gov or contact their loan servicer to explore options such as loan consolidation or rehabilitation.

"Loan rehabilitation is a longer process, but it can help get your loan back into good standing," she said.

U.S. Secretary of Education Linda McMahon defended the decision to resume collections, stating in a press release: "American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies."

As for Mason, she says she's always valued education and the responsibility that comes with it.

"We want to have the education and be able to go back and get more education," she said. "I don't see anything wrong with it, if you owe something, pay it. That goes for any bill."