LAFAYETTE, KATC - Millions of Americans with defaulted federal student loans will be required to resume payments beginning May 5, a move that is sparking anxiety among borrowers already burdened by debt and financial uncertainty.
The U.S. Department of Education confirmed this week that collections will restart after a years-long pause initiated during the COVID-19 pandemic. The Trump administration announced the plan Monday, emphasizing that there will be no mass loan forgiveness for those in default.
“I’m very nervous about student loans just because I feel like it’s going to take me years to pay off,” said Joycelyn Southall, a sophomore at the University of Louisiana. “It is in the back of your mind like, I still have to pay off.”
Her concerns echo those of students and borrowers nationwide.
“I’m extremely worried,” said Halbert Morris, also a sophomore at the university. “College is stressful enough.”
More than 42 million Americans hold federal student loans, and over 5 million borrowers have not made a repayment in the past year, according to the Education Department.
Khandice Lofton, counsel at the Student Borrower Protection Center, a nonprofit focused on eliminating student debt, said the policy shift will disproportionately impact low-income borrowers.
“This really means the restarting of what can be devastating,” Lofton said. “Borrowers want to repay their loans, but they have a right to make affordable payments.”
Lofton urged borrowers to act quickly ahead of the May 5 deadline.
“First thing borrowers should do is log onto [Federal] Student Aid, make sure you check your account, see how much you owe, and possibly reach out to your servicer,” she said.
The Education Department noted that borrowers who fail to act may face automatic wage garnishment and other collection measures. Over the next two weeks, those affected will receive notices urging them to either resume payments or contact federal relief programs.
