Linda McMahon Resumes Federal Student Loan Collections, Fill Form Here

Linda McMahon Announces Resumption of Federal Student Loan Collections

Education Secretary Linda McMahon has declared that the U.S. Department of Education will restart collections on defaulted federal student loans beginning May 5, 2025. This move ends a pause that began in March 2020 during the COVID-19 pandemic.​

Impact on Borrowers

Approximately 5.3 million borrowers are currently in default, with an additional 4 million severely delinquent. The Department plans to notify affected individuals via email in the coming weeks, outlining options such as income-driven repayment plans or loan rehabilitation. Failure to respond may result in wage garnishment, tax refund interception, or loss of Social Security benefits.

Rationale Behind the Decision

Secretary McMahon emphasized the need for fiscal responsibility, stating, "American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies." She criticized previous administration efforts to cancel student debt, arguing they misled borrowers about the government's authority to forgive such loans. 

Support Measures for Borrowers

The Department's Office of Federal Student Aid will offer support to help borrowers manage repayment. Options include enrolling in income-driven repayment plans or rehabilitating defaulted loans to avoid penalties.

Broader Administrative Changes

This policy shift aligns with the Trump administration's broader goals of restructuring the Department of Education. Recent actions include significant staff reductions and proposals to transfer student loan responsibilities to other federal agencies.

How to Fill Out Federal Student Loan Forms

If you're in default or facing repayment challenges, here’s a quick guide to filling out key federal student loan forms:

1. Go to the Official Federal Student Aid Website

• Visit https://studentaid.gov

• Log in using your FSA ID. If you’ve forgotten it, you can reset it on the site.

2. Choose the Form You Need

• For default recovery: Select Loan Rehabilitation or Consolidation.

• For payment relief: Choose an Income-Driven Repayment (IDR) plan such as REPAYE or PAYE.

3. Fill Out the Application Online

• Use the step-by-step guided forms.

• Have your tax return or income documents ready.

• For IDR plans, you’ll need to provide your family size and current earnings.

4. Submit and Monitor

• After submitting, you’ll receive confirmation.

• Stay in touch with your loan servicer—they will inform you about approval, monthly payments, and next steps.