Federal Government Resumes Collections on Defaulted Student Loans Affecting 5.3 Million Borrowers with Wage Garnishment, Including 320,000 in Utah

The federal government has resumed collections on defaulted student loans as of early May 2025, potentially affecting 5.3 million borrowers nationwide. This renewed enforcement includes wage garnishment, which could lead to significant financial consequences such as withheld benefits and declining credit scores. In Utah alone, approximately 320,000 borrowers may be impacted by these measures. Borrowers are advised to take steps to avoid wage garnishment and other collection actions, with a deadline extending until summer 2025 to take preventive measures. The government’s crackdown highlights the importance for defaulted borrowers to understand their options and protect their financial standing.