India, May 9 -- After a five-year pause, the US government has officially resumed collections on defaulted federal student loans, triggering serious consequences for millions of borrowers across the country, as reported by Forbes.

As of May 5, 2025, involuntary debt collection efforts-including wage garnishment, tax refund seizures, and Social Security benefit reductions-are once again in effect.

Roughly 5 million borrowers are currently in default on their federal student loans, with an additional 4 million in immediate danger of slipping into default. Together, these 9 million individuals now face potential legal and financial actions from the US Department of Education and Department of the Treasury.

Wage garnishment allows the gove...