Washington DC—Amidst current volatility in the stock market, federal spending costs, and layoffs, the U.S. The Department of Education announced plans to resume collections on defaulted student loans starting May 5, 2025, after the expiration of pandemic-era relief measures.
Black Americans are among the 5 million American borrowers in default, and another 9 million struggle to keep pace with payments. Black American bachelor’s degree holders earn $56,000, lagging 20 to 30 percent behind the national demographic income comparison, while Asian Americans earn $81,400.
“The true cost of obtaining a bachelor’s degree can be staggering, exceeding $500,000 when factoring in interest payments and lost incomes,” said Melanie Hobson, Education Data Senior Editor.
While repayments can seem like mopping an ocean, the path of least resistance might just be to resume repayments or simply start. Beginning May 5, the Department of Education will initiate involuntary collection, including wage garnishments.
Borrowers can reach out to their student loan servicer and the Department of Education to discuss their options and set up an affordable payment plan.
