Your Money Line Update on Federal Student Loans Collections:

We wanted to flag a major U.S. Department of Education update that could impact

many of you. The Department recently announced that as of 5/5, it will restart

collections on defaulted federal student loans.

Who is impacted?

If you’ve missed payments on your federal student loans, even before the pandemic

pause, you could be in default.

What’s going to happen?

Default collections are restarting. That means if your loans are 270+ days overdue, the

government may garnish wages or withhold tax refunds. Your credit score could also

begin to drop.

What can you do right now?

1. Update your contact info in your loan servicer’s portal.

2. Watch for emails from the Department of Education.

3. Explore repayment plans that adjust based on your income

4. Keep records of everything: emails, statements, receipts, etc.

5. Talk through your other options with a student loan pro.

Available resources?

We partner with Your Money Line for financial wellness and student loan expertise. YML is district-provided, and all of their services are 100% free and confidential. Youcan download their app for support on the go. Our org code is: wbsd. 

They have helpful articles like "What to Do If Your Student Loans Are in Default". Contact their team at answers@yourmoneyline.com or schedule a call at yourmoneyline.com/schedule for free and confidential 1:1 coaching and to discuss next steps. 

They can help you with the following:

• Understand resolution options like consolidation and rehabilitation

• Enroll in affordable income-driven repayment plans

• Avoid garnishment and collection actions entirely

Please let us know if you have questions, and we're here to support!