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Student Loan Law: Collections on Defaults


Federal student loan collection powers are so extensive that the US government rarely needs to sue borrowers, opting instead for an array of extra-judicial collection tools. There is no statute of limitations on the collection of student loan debt from the former student.

To protect the most vulnerable borrowers from the worst consequences of missed payments following the payment restart, the Department is instituting a 12-month “on-ramp” to repayment, running from October 1, 2023 to September 30, 2024, so that financially vulnerable borrowers who miss monthly payments during this period are not considered delinquent, reported to credit bureaus, placed in default, or referred to debt collection agencies. This is the "Fresh Start" program. Whitehouse Fact Sheet.


Tax Refund Offsets

Debt Collection Regulations

Non-Judicial Wage Garnishment