LAFAYETTE, LA — Starting May 5, millions of Americans with defaulted federal student loans will be required to resume payments, ending a years-long pause that was initiated during the COVID-19 pandemic. The announcement from the U.S. Department of Education has sparked anxiety among borrowers, many of whom are already grappling with financial instability.
The pause on student loan repayments, which began under the Trump administration as part of pandemic relief efforts, allowed millions of Americans to delay payments without facing penalties. However, with the resumption of collections just weeks away, borrowers across the nation are expressing concern about the looming financial burden.
“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 at Lafayette. “It is in the back of your mind like, I still have to pay off.”
Southall’s worries are shared by many students and borrowers who feel that the resumption of payments comes at a particularly challenging time. For many, the pressure of managing education costs, rising living expenses, and student loan debt is overwhelming.
Halbert Morris, another sophomore at the university, echoed similar sentiments. “I’m extremely worried,” he said. “College is stressful enough.”
According to the U.S. Department of Education, more than 42 million Americans hold federal student loans, with over 5 million borrowers who have not made a repayment in the past year. The impending restart of loan collections is likely to create financial hardships for a significant portion of this group, especially those already in default.
Khandice Lofton, a counsel at the Student Borrower Protection Center, a nonprofit organization dedicated to advocating for student loan borrowers, highlighted the disproportionate impact this policy shift will have on low-income individuals. Lofton warned that the resumption of collections could result in “devastating” consequences for many borrowers, noting that while borrowers are eager to repay their loans, they also deserve affordable payment options.
“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.”
With the May 5 deadline fast approaching, the Department of Education is urging borrowers to take immediate action. They recommend logging into their Federal Student Aid accounts to review loan details, check balances, and reach out to loan servicers to discuss repayment options. Those who fail to act may face automatic wage garnishment, tax refund seizures, or other collection measures.
“The 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,” Lofton advised.
Over the next two weeks, borrowers will receive notices from the Department of Education, reminding them to either resume payments or explore available relief programs. For many, this may be the final opportunity to avoid the consequences of default before collections begin.
The resumption of student loan payments is a reminder of the financial challenges many Americans face in the wake of the pandemic. While some borrowers may find relief through income-driven repayment plans or other federal relief options, others worry that the restart will only add to the financial strain they already experience.
As the May 5 deadline nears, borrowers across the country are bracing for what could be a financially painful return to normalcy.