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Let’s be real: no one’s been missing student loan payments for fun. But starting May 5, 2025, the break is officially over.

After more than four years of pause, the Department of Education is resuming student loan collections—and it could hit a lot harder than you think. Over 5 million borrowers are currently in default, and many more are behind on payments. If that’s you (or someone you love), it’s time to get ahead of the curve—before wage garnishments or credit damage sneak up on you.

📉 What’s About to Happen?

In short, if your loans are delinquent or in default, they could now be sent to collections.

That opens the door to some serious consequences—think wage garnishments, tax refund seizures, and credit score nosedives. Once your debt hits collections, it’s no longer just a number on paper—it’s a full-on financial landmine.

📊 Why Is This Happening Now?

The Department of Education says only 38% of borrowers are actually making payments right now. That’s a problem. With millions behind on payments, this move is part of a bigger push to re-establish long-term financial accountability.

Translation? The government’s turning the pressure back on.

💳 How Could This Hit Your Credit?

If your loans hit collections, expect your credit score to take a hit—and that hit can ripple into everything. It can:

• Keep you from qualifying for a mortgage
  
  
• Raise your auto loan rates
  
  
• Make it harder to rent a home
  
  
• Even affect your ability to get a job (yes, really)
  
  

And the longer you sit in default, the worse it gets.

🛠️ What Steps Can You Take Today?

Here’s the good news—you still have time to act before the collections kick in. Start with these steps:

• Call your loan servicer and ask about rehabilitation or consolidation options
  
  
• Apply for income-driven repayment plans to lower your monthly burden
  
  
• Don’t ignore the emails or letters from the Department of Education—they’re not spam
  
  
• Or better yet, reach out to Blue Water Credit for expert help navigating your next move
  
  

This isn’t something to wait on. If you’re even a little behind, now’s the time to get caught up—before your paycheck or tax refund takes the hit.

Student loan collections are coming back—and fast. If you’re behind, this could seriously affect your credit, your buying power, and your financial freedom. But with the right moves and the right help, you can take back control before collections take it from you.

📲 Call or text us at 855-935-MORE to get connected with the right resources—and start repairing or protecting your credit today.