As federal collections on defaulted student loans resume after the pandemic pause, borrowers are increasingly seeking help from state ombudspersons like Celina Damian. With over 5 million borrowers currently in delinquency, the influx of anxious calls reflects confusion over loan statuses, repayment options, and fears around wage garnishments. The federal government’s actions can have significant economic implications at the state level, affecting tax revenues and public services. States play a role in managing loan servicers, offering outreach, and aiming to minimize defaults, while the burden of loan payment stresses repayment responsibility on borrowers.
State student loan ombudspersons, like Celina Damian, provide critical support for anxious borrowers navigating the return of federal collections on defaulted student loans.
With over 5 million borrowers currently in delinquency, the restart of collections has sparked a wave of concerns among those trying to understand their loan status.
Collection
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