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Federal Student Loan Repayments Are Due, Again
May 6, 2025
Join Mike Pierce, the Executive Director and co-founder of the Student Borrower Protection Center, and Danielle Douglas-Gabriel, a national higher education reporter for The Washington Post. They dive into the resumption of federal student loan payments affecting over five million borrowers. The duo discusses the impact of looming collections, including potential garnishments of Social Security and tax refunds. They also tackle the complexities of repayment options, staffing shortages in support centers, and the broader implications of student debt on the economy.
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Quick takeaways
- The resumption of student loan payments has left over five million borrowers feeling confused and anxious about their financial futures.
- Significant difficulties in navigating the student loan system are heightened by Department of Education staffing cuts and accumulating interest on loans.
Deep dives
Return to Student Loan Payments
The resumption of student loan payments has begun after a lengthy pause due to the pandemic, affecting approximately 5.3 million Americans currently in default. Many borrowers have expressed frustration and uncertainty about these payments restarting, particularly after several years of not having to make any payments. Some individuals are unaware that they are now responsible for payments, leading to concerns about missed deadlines and the consequent impact on their credit scores. The Department of Education is now implementing measures to collect debts, which could include garnishing wages and seizing tax refunds, significantly affecting the financial stability of many borrowers.
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