Collections resume Monday for federal student loans

SALT LAKE CITY — The U.S. Department of Education resumed collections on defaulted student loan payments from borrowers all over the country Monday following a five-year pause. Beginning with the COVID-19 pandemic and continuing through the Biden administration, many loans were allowed to defer without financial consequence. Beginning today, borrowers who find themselves in default may have their tax return or social security garnished if they make no effort to pay. The Department of Education says more than 42 million people currently hold student debt and about 5 million are in default. Here in Utah, a little over 9% of our population has student debt, a lower number than most states. The majority of Utah borrowers owe less than $40,000. Geoffrey Landward is the Commissioner for the Utah Board of Higher Education; he says, "We're pretty much debt averse as a state and as a people, and that's reflected in how we take on student loan debt as well." Landward said Utah schools have worked closely with the legislature to provide high-quality education at low costs, thanks in large part to taxpayers. "Utah is among the very lowest when it comes to tuition and fees. In fact, we're about number five in the nation," he said. Some students do need loans to get by, but Landward said debt should be a calculated decision. "These are the kind of jobs that you'll be looking for. They're either in high demand or they're not. They pay high wages or they don't. You should have that information before you make a decision about taking on debt." Student loans have been central to political campaigns and shifting administrations over the past few years, which may be confusing to prospective students and past borrowers alike. Landward said it's important to keep the value of your specific educational goal in mind. "It hasn't diminished the return on investment that a higher education gives a person who takes the time to go and get a degree or certificate," Landward said. If you have student loan debt, the Department of Education said you should expect ample notice by phone and email about deadlines before your tax return or social security takes a hit. You can check your loan status and work out a payment plan at studentaid.gov.

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