On Monday, the U.S. Department of Education is expected to resume collections on student loans that are in default, ending a five-year pause that first began at the start of the pandemic. According to the agency, more than 5 million borrowers are in default, which typically happens after nine months of non-payment on a federal student loan. The federal government can force collections on defaulted student loans by garnishing wages, tax refunds or Social Security benefits.
About 500,000 Oregonians have student loans, most of which have balances between $10,000 and $40,000, according to Lane Thompson, the Oregon Student Loan Ombuds. That position was created through the passage of SB 485 in 2021 that also required all companies that service student loans in Oregon to be licensed by the state’s Division of Financial Regulation. Thompson joins us to share more information about her office and offers advice for borrowers in Oregon.
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