On Monday, April 21ST, the Department of Education announced that they will restart collection on federal student loans on May 5, ending a pandemic-era pause that had roughly began five years ago.

Originally, individuals who don’t make payments for more than 270 days will have their loans go into default.

Approximately four million borrowers have already fallen into late-stage delinquency, a term used in referring to those who are 91 to 180 days past due on payments.

According to an ABC News article, the announcement came to be as scores of FSA, also known as Federal Student Aid, employees were terminated at the Department of Education as part of President Donald Trump’s efforts to shutter the agency.

This has created uncertainty for borrowers and the future of the student loan system, also being mentioned within the same article. ( Jones, Apr, 21, 25 ).

” This is cruel, unnecessary and will further fan the flames of economic chaos for working families across this country, ” Mike Pierce, Student Borrower Protection Center Executive Director, told ABC News in a statement. ( Jones, Apr, 21, 25 ).

Currently, Education Department officials are aiming to help borrowers get back on track with repaying their student loans. The official also asserted that only 4 out of 10 borrowers have stayed up-to-date with their loan payments.

Mentioned in a Black Enterprise Article, the Education Department will encourage them to participate in student loan repayment programs, such as the income-driven repayment, IDR, plan or loan rehabilitation.

The Department had also recently reopened access to IDR plan applications ahead of the news as well, being linked in the Black Enterprise article cited before. ( Abdur-Rahman, Apr, 22, 25 ).