Student loan debt collections resume on May 5
SPRINGFIELD, Mo. — The deadline is closing in for student loan borrowers, as the Trump Administration will resume collections next month.
Ozark Firsts spoke to financial aid advisors and residents at Missouri State University about what this means for students.
The assistant financial aid director for Missouri State University said this won't apply to both current and recent graduates.
'For our students who are currently enrolled in school, this won't touch them because they're not in a monthly loan repayment situation,' Victoria Jacobson, MSU Assistant Financial Aid Director said. 'For our previous borrowers, whether or not they graduated, and they've been out of school at least six months, they moved into loan repayment.'
The U.S. Department of Education plans to enforce these cases by seizing federal benefits like social security and trimming wages.
Loan borrowers behind on payments will also have their credit scores go down. This is the first time that these collections have been resumed in the last five years, with President Trump previously pausing them back in 2020 in response to the COVID-19 pandemic.
Springfield resident Brian Futrell says it is often challenging for students leaving college to find employment that will support them, while also repaying their debts.
'So many of them, even if they do finish college, they have a very difficult time finding a job that pays anything,' Futrell said. 'And if they keep adding on late charges to the student loans and they're never going to be able to catch up.'
The repayment will go into affect on May 5.
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