The pause on payments also includes a pause on debt collection against borrowers who are in default— including wage garnishment, reduction of tax refunds, and reduction of Social Security and Social Security disability benefits. Recent guidance states that the pause on debt collection applies only from March 13, 2020 until the end of the payment pause (see the current status of the pause here). If collections against you were being processed after March 13, 2020, you are eligible for a refund on that amount.
The announcement from April 6, 2022 also said that when payments resume, borrowers currently in default and delinquency throughout the pause will have a fresh start. Specifically stating, "This includes allowing all borrowers with paused loans to receive a “fresh start” on repayment by eliminating the impact of delinquency and default and allowing them to reenter repayment in good standing." More information on the Fresh Start program is expected soon, and Savi will provide borrowers with an update.
Find the official Department of Education guidance regarding all coronavirus relief efforts here.