DENVER (KDVR) — The U.S. Department of Education will begin collecting payments on defaulted federal student loans on May 5, and could end up deducting payments from the wages of millions of borrowers by the end of the summer.
The department has not collected on defaulted loans since March 2020, after President Joe Biden paused the payment program during the COVID-19 pandemic.
Trump administration terminates $24M in grants sent for Denver migrant shelters, citing ‘current priorities’
Nearly 25% of student loans could soon be in default as well. With more than a trillion dollars in student debt looming, the Trump administration says this is an important step toward protecting taxpayers and helping borrowers get back on track.
The department reports that as of 2025, 42.7 million borrowers owe more than $1.6 trillion in student debt. More than 5 million remain in default, and 4 million are in late-stage delinquency…