student loans default repayment plans.

Between collections resuming, courts challenging student loan programs and layoffs in the Education Department, borrowers might be confused about the status their student loans. Recently, the Education Department announced that it would start involuntary collections through the Treasury Department’s offset program. Involuntary collection could affect the roughly 5.3 million borrowers who are in default. At the center of the turmoil are the government’s income-driven repayment plans, which reduce monthly payments for borrowers with lower incomes. Those plans were temporarily paused after a federal court blocked parts of the plans in February.

Between collections resuming, courts challenging student loan programs and layoffs in the Education Department, borrowers might be confused about the status their student loans. Recently, the Education Department announced that it would start involuntary collections through the Treasury Department’s offset program. Involuntary collection could affect the roughly 5.3 million borrowers who are in default. At the center of the turmoil are the government’s income-driven repayment plans, which reduce monthly payments for borrowers with lower incomes. Those plans were temporarily paused after a federal court blocked parts of the plans in February.