WASHINGTON–Countless credit union members nationally will soon be feeling new budget pressures as the U.S. government is set to resume involuntary collections on defaulted federal student loans next month, according to the Education Department.

The move will bring to an end  a five-year pause that began at the start of the COVID-19 pandemic.

What’s Owed

Data show 42.7 million borrowers owe more than $1.6 trillion in student debt, and of those about 5.3 million borrowers are in default, which could grow as delinquency rates increase, analysts have stated. 

Many of those borrowers will have money withheld from tax refunds and Social Security benefits.

The Education Department said the collections will begin May 5. Wage garnishing will resume in the summer.