Debt without discipline is a ticking time bomb. For five years, federal student loan collections were paused. That delay is over—and the bill has arrived.
As of May 5, collections on defaulted federal loans have resumed. Over 43 million Americans hold student debt, and more than 20% are already delinquent. Wage garnishments, tax refund seizures, and Social Security offsets are back in play. With an average balance of $38,375 and $1.7 trillion outstanding, the system is now facing its own math. The warning signs were always there—only the deadline changed.
This isn’t just a policy correction. It’s a financial jolt. The era of endless forbearance has ended. Accountability is being enforced, and with it, a return to reality. The lesson is permanent: debt ignored is debt multiplied. And now, it’s being collected.