Loan Repayment Restart: What Every Former Student Needs to Know

As of May 5, the U.S. Department of Education has resumed collections on defaulted federal student loans, ending a five-year pause that began during the COVID-19 pandemic. This change affects all former students who have outstanding federal student loans, including those who graduated, transferred or withdrew, who are not currently enrolled at least half-time.

What This Means for You

If you're no longer enrolled in school and have federal student loans, it's crucial to take the following steps to avoid potential consequences such as wage garnishment, tax refund seizures, or reductions in Social Security benefits:

Contact Your Loan Servicer

Identify and reach out to your loan servicer to discuss your loan status and repayment options. You can find your servicer by logging into your account at StudentAid.gov.

Update Your Contact Information

Ensure that your contact details are current in your StudentAid.gov profile. This will help you receive important communications regarding your loans.

Explore Repayment Options and Establish a Plan

Discuss available repayment plans with your loan servicer and choose one that fits your financial situation. Options include income-driven repayment plans, deferment, forbearance, or loan rehabilitation. Learn more about these options here:

If you're already making payments and your loans are in good standing, you may disregard this information. However, it's still a good idea to review your loan information to ensure everything is up to date.

Taking these steps promptly can help you stay on track with your loan repayment and avoid potential penalties.

For more information and resources, visit StudentAid.gov.

If you have questions or need assistance, the Federal Aid Team at Utah State University is here to help. You can contact the Default Prevention team at defaultprevention@usu.edu, or call (435) 797-0173 (Ext. 1) for Federal Aid.