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Student Loan Law: Collections on Defaults

Introduction

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.

The U.S. Department of Education resumed collections May 5 for defaulted federal student loans. After pausing during the early weeks of the COVID-19 pandemic, the agency had not collected on defaulted loans in over five years. 

 

 

Tax Refund Offsets

Debt Collection Regulations

Non-Judicial Wage Garnishment