BOSTON [5/21/25] – The United States Department of Education recently announced that the office of Federal Student Aid (FSA) resumed collection of defaulted federal student loans on Monday, May 5, 2025. The Department has not collected on defaulted loans since March of 2020, though Congress mandated that student and parent borrowers resume repayment in October 2023.
“As the Massachusetts authority on education financing, part of MEFA’s mission is to provide consumers with information needed for financial success,” said Jonathan Hughes, Associate Director of College Planning and Education. “As part of that mission, it’s important to ensure that federal student loan borrowers are aware of how to stay on track with repayment and avoid default.” He added that resources are available to help borrowers navigate the repayment process.
At this time, MEFA urges anyone with a federal student loan to visit Federal Student Aid to review their loan status and ensure that their loan payments are on track. If you have a federal loan that is in default, visit the Department of Education’s debt resolution website, myeddebt.ed.gov/, to help you understand your options. To avoid further consequences, borrowers are encouraged to act as soon as possible to understand options that may be available.
Later this summer, FSA is expected to begin administrative garnishment, which may include a withholding of wages, income tax refund, or other federal payments.
There are ways a borrower may avoid administrative garnishment. One option is to enter into a loan rehabilitation agreement. To begin the process, a borrower must contact the loan’s servicer. The requirements to rehabilitate your loan(s) depend on the loan type. Another way to avoid garnishment would be to consolidate defaulted federal student loans into a Direct Consolidation Loan, allowing you to pay off one or more federal student loans with a new consolidation loan.
Detailed information to help borrowers get back on track can be found at StudentAid.gov/end-default.
What You Can Do Now
Log in to Federal Student Aid
Log into your account at studentaid.gov (using your FSA ID) to ensure your contact information is up to date, and to review your loan information and repayment status to see if they are listed as in default. Your account will also provide information about your student loan servicer. You may contact your servicer with any questions about your loan’s status.
If you are affected by this announcement, stay connected.
Visit the Department of Education’s debt resolution website, myeddebt.ed.gov, for accurate information and assistance to help resolve defaulted loans or grants.
If you still have questions, reach out to MEFA
As with all questions related to college repayment, MEFA is available to help. Reach out to MEFA at [email protected] or (800) 449-6332.
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MEFA is a state authority, not reliant on state or federal appropriations, established under Massachusetts General Laws, Chapter 15C. MEFA’s mission, since its founding in 1982, has been to help Massachusetts students and families access and afford higher education and reach financial goals through education programs, tax-advantaged savings plans, competitive loans, and expert guidance. All of MEFA’s work aligns with the ever-present goal to support the independence, growth, and success of Massachusetts students and families. Visit mefa.org to learn more.
