Student loan enforcement set to resume with thousands getting contacted over past dues

A new push to collect overdue student loans is expected to begin this summer, with thousands of borrowers set to be contacted for the first time since the pandemic.

According to Politico, officials said the Treasury Department and Department of Education are preparing to launch a collection programme in July targeting borrowers in default.

The report stated that about 500,000 borrowers could initially be included, though a Treasury spokesperson disputed the figure without providing an alternative estimate.

More aggressive measures, such as wage garnishment, are not expected to begin immediately and could be delayed until after the midterm elections.

The initiative forms part of a broader plan to transfer management of the $1.7 trillion student loan portfolio from the Education Department to the Treasury.

An Education Department spokesperson said to Politico, the “information” regarding the programme was “incorrect,” but did not clarify further.

“ED and Treasury are currently collaborating on how best to implement phase one of the partnership,” the spokesperson added.