The U.S. Department of Education will resume involuntary collections on May 5th for federal student loans in default, according to CNBC. The Treasury Offset Program will be used to withhold tax refunds, Social Security, and other federal payments to recover the debt. The Department of Education has not been collecting on defaulted student loans since March 2020 and has extended a grace period through September 2024, following the end of the pandemic-era pause. Over 5 million borrowers default, with another 4 million more than 90 days past due.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02U.S. Department of Education will resume involuntary collections on May 5th for federal student loans in default, according to CNBC.
00:09The Treasury offset program will be used to withhold tax refunds, Social Security, and other federal payments to recover the debt.
00:15The Department of Education has not been collecting un-defaulted student loans since March 2020
00:20and has extended a grace period through September 2024 following the end of the pandemic era pause.
00:26Over 5 million borrowers are currently in default, and another 4 million more than 90 days past due.
00:32For all things money, visit Benzinga.com slash GSTV.