June 11, 2025

As announced on April 21, 2025, the Department of Education has resumed its collections on defaulted federal student loan portfolios with the restart of the Treasury Offset Program on May 5, 2025. All borrowers in default will receive email communications from Federal Student Aid (FSA) urging you to contact the Default Resolution Group to make a monthly payment, enroll in an income-driven repayment plan, or sign up for loan rehabilitation. Please note that later this summer, FSA will begin to send notices for administrative wage garnishment.

The Department of Education has also initiated an outreach campaign to remind all borrowers of their repayment obligations and provide resources and support to assist you in selecting the best repayment plan for your circumstances. FSA has launched an enhanced income-driven repayment (IDR) plan process, which aims to simplify how borrowers enroll in IDR plans and to eliminate the need for many borrowers to manually recertify their income each year. 

Given the urgent need to ensure that our alumni student borrowers enter repayment and stay current on their loans, we want to:

• Remind you that you are obligated to repay any federal student loans that have not been repaid and are not in deferment or forbearance;
• Suggest that you, the borrower, review information about repayment options on StudentAid.gov; and 
• Urge you to log into StudentAid.gov using your StudentAid.gov username and password and update your profile with current contact information to ensure that your loans are in good standing. Detailed information to help borrowers get out of default is also available at StudentAid.gov/end-default.