By coinnews 
00:00 Speaker A
The US Department of Education announcing it will begin collections of overdue student loan payments starting May 5th for the first time since March of 2020. According to the department, over 5 million borrowers are currently in default, meaning they have not paid in nine months. An additional 4 million borrowers are between 90 and 180 days past due. The department says just 40% of borrowers are up to date on their student loan payments. The Office of Federal Student Aid will notify all borrowers who are in default in the next two weeks. They are then expected to sign up for loan rehabilitation, apply for an income-based repayment plan, or make a payment. If none of those actions are taken after 30 days, borrowers are subject to involuntarily being collected on through the Treasury offset program, including wage garnishment. Student loan advocates criticize the decision with the Student Borrower Protection Center calling the move cruel and unnecessary, but the department said it plans to offer resources to borrowers, including an AI assistant, a simplified income-driven repayment application, and additional service or call times.