US President Donald Trump announced last month that college loan repayment collections will resume starting May 5. According to the Department of Education, over 5 million borrowers have not made a payment in more than 360 days, and this number could potentially double to 10 million.
Experts warn that borrowers in default may face wage garnishment if they don’t take action. However, financial advisor Michael Neuenschwander suggests taking proactive steps to prevent payments from being stripped from accounts. These include:
1. Starting immediate payments.
2. Enrolling in an income-driven repayment plan, which adjusts monthly payments based on income.
3. Exploring deferment or forbearance options to temporarily pause payments and interest.
Some career paths may also offer loan forgiveness after working for a few years. However, experts caution that extending loan repayment periods can lead to longer payoff periods and increased interest.
As a result, it is essential for borrowers to take action rather than doing nothing, ensuring they don’t fall into collections or face wage garnishment.
Source: https://www.click2houston.com/news/local/2025/05/22/dont-sit-back-and-wait-financial-advisor-shares-smart-moves-for-tackling-your-student-loans