This week, the Department of Education announced that collections on student loans will resume on May 5, 2025. Borrowers should start receiving emails from FSA over the next few weeks regarding their loans and how to proceed.
If you have defaulted student loans, your loans could be turned over to collections. Some of the impacts of collections could be:
- Wage garnishment
- Tax refund seizure
- Social Security offset
- Damage to your credit score
If you are in default, you do have options. Please click on the below link to a help center article to learn more about how to get your student loans out of default: https://bysavi.zendesk.com/hc/en-us/articles/115005092894-I-am-nearing-in-default-on-my-student-loans-What-are-my-options
If you are delinquent and struggling to make payments on your loans, consider looking into options like enrolling in an Income Driven Repayment (IDR) Plan to lower your monthly payments or considering a forbearance or deferment to pause payments for a few months. If you are delinquent on your student loans for more than 270 days, they will go into default.
If you are a Savi Essential member, you can always reach out to our customer support team through your dashboard and they would be happy to help with any questions you have.
Borrowers should check their student loan status at https://studentaid.gov/
See the full Department of Education announcement visit this link: https://www.ed.gov/about/news/press-release/us-department-of-education-begin-federal-student-loan-collections-other-actions-help-borrowers-get-back-repayment