Navigating student loan repayment: experts weigh in as collections for defaulted student loans resumes

PALM DESERT, Calif. (KESQ) – The Department of Education has resumed collecting student loans for borrowers in default.

The department has not collected on defaulted loans since March 2020.

In a press release, Secretary of Education Linda McMahon says, "Going forward, the Department of Education, in conjunction with the Department of Treasury, will shepherd the student loan program responsibly and according to the law, which means helping borrowers return to repayment—both for the sake of their own financial health and our nation’s economic outlook."

The Department of Education also says more than 5 million have not made a monthly payment on their student loans in 360 days, placing them in default. An additional 4 million are in late-stage delinquency, meaning they haven't made a payment in 91-180 days.

News Channel 3 has reached out to local institutions, like College of the Desert and California State University, San Bernardino, to hear from financial aid advisors on what students can do as they weigh repayment options.

Stay with us for the latest.