After a five-year hiatus, the U.S. Department of Education says it will begin resuming collections of defaulted student loans on May 5.
Of the more than 42.7 million student loan borrowers in the U.S., who owe a collective $1.6 trillion, the department says that more than 5 million have not made a payment in the past year. That number is expected to grow as an additional 4 million borrowers are approaching default status.
“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” U.S. Secretary of Education Linda McMahon said in a statement.
The department said it will begin notifying borrowers who are in default via email over the next two weeks, urging them to make a payment or to enroll in a repayment plan, and referring them to a government website providing information on how to do so.
Then, on May 5, the department will begin referring borrowers who remain in default to a collections program run by the Treasury Department.