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Dear Neighbor,
The Trump administration has announced that it will resume collections on defaulted federal student loans starting May 5th, ending Biden-era protections put in place to support borrowers impacted by the COVID-19 pandemic.
If you've missed loan payments, paid late, or made partial payments, you could be referred to a federal debt collection agency or placed in an income-driven repayment plan. For borrowers unable to make payments, the Department of Education may proceed with involuntary collections. This means automatic deductions could be taken from your paychecks, Social Security benefits, or tax refunds to repay your loan.
I strongly oppose ending these protections, which put more than one-fifth of the 43 million federal student loan borrowers at risk of financial harm. My office is here to help anyone affected by this sudden change in policy.
What Are Your Options?
If You’ve Missed Payments:
Log in to your loan servicer’s portal to make up the missed amount. If you're unable to pay in full, consider applying for an income-driven repayment plan. These plans cap your monthly payments at a percentage of your discretionary income and may offer loan forgiveness after a set number of years.
If You’re Currently Unemployed:
You can request an unemployment deferment through your loan servicer. Other deferment options may also be available, including the graduate fellowship deferment, military service and post-active-duty deferment, or cancer treatment deferment
If You Don’t Qualify for Deferment:
You may be eligible for forbearance, which allows you to pause payments for up to three years. However, interest will continue to accrue during the forbearance period.
For more information about repayment options or help navigating this policy change, visit HERE or contact my office directly at (562) 860-5050.
Stay safe,
Linda T. Sánchez
Member of Congress
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