It’s hard enough to get by in 2025 — but student loan collections could make things even worse for those with student debt.
The federal government plans to resume collections on defaulted student loans, officially ending a pandemic-era pause that began in March 2020. As of this week, the U.S. Department of Education is once again recovering funds through the Treasury Offset Program, which allows the government to withhold tax refunds, garnish wages, and reduce federal benefits like Social Security.
About 5 million borrowers nationwide are currently in default, and with student debt in the U.S. now totaling $1.6 trillion, the financial impact could be widespread.
In the South alone, more than a million people hold student loans — many could be at risk of collections if they’ve fallen behind on payments.
Collections are restarting under the Trump administration’s direction, marking a sharp policy shift from the previous administration’s approach to student debt relief.
Borrowers in default should have received emails from the Office of Federal Student Aid with steps for resolving their debt. Options include enrolling in income-based repayment plans, making monthly payments, or entering a loan rehabilitation program that could remove their loans from default status.
Those who do not take action could face serious consequences, including wage garnishment and the loss of tax refunds. Credit scores may also be negatively affected.
This change comes after the U.S. Supreme Court blocked President Biden’s 2023 plan to cancel up to $20,000 in federal student loan debt. Trump administration officials have stated there will be no mass forgiveness moving forward.
Current and future borrowers are urged to review their loan details, update contact information and consider repayment options at studentaid.gov.
DOTHAN: 3:35 PM Dothan 911 dispatched Dothan Police, Dothan Fire Engine Company 4 ( Southside ), and two Pilcher Ambulance to South Beverlye Road and Rowland Road to a motor vehicle accident with injuries.
The accident was dispatched as a critical injury accident, one vehicle overturned with entrappment, involving three vehicles.
Houston County Sheriff Deputy was first on the scene followed by Dothan Police. On the arrival of emergency units it was determined all occupants had exited the vehicle and one person was injured. Dothan Fire Engine Company 4 reported the one injury was minor to moderate injuries.
Emergency units reported heave damage to the vehicles. The intersection was closed.
The one patient was transported by Dothan Fire Engine 4 Paramedic and Pilcher Ambulance to Southeast Health.
Dothan Police is in charge of the accident investigation.
MAYBE … Dothan Fire Engine Company 4 can finally eat. They have attempted three times but emergency calls have stopped that. They were able to take one bite. So when you see fire or EMS taking a break to eat, hey, pickup the tab! Emergencies interrupt the meals often times.
COWARTS: 4:50 PM Houston County 911 dispatched Cowarts Volunteer Fire Department, Ashford Rescue, Ashford Volunteer Fire Department, Houston County Sheriff Deputies and Ashford Police Department to 1570 Bluff Springs Road to a structure fire.
Thick black smoke could be seen from the air as units were responding to the structure fire.
On arrival of the first fire engines it was announced the residence was fully involved. It was also announced the structure fire was a “defensive” fire only. All occupants were reported to have exited the structure.
On arrival fire was all the way across the top of the residence. The thick blakc smoke could be seen from several miles away.
Cowarts Mayor Randy Rowland was on the scene assisting.
Mutual aid requests for additional personnel and water went out. Lovetown Volunteer Fire, Webb Volunteer Fire, Webb Volunteer Fire, Madrid Volunteer Fire Department, were some of the departments on the scene. There were no fire hydrants close so water was a issue.
There were some loud explosions. There was a propane tank on the side of the house. The roof caved in while fireman were fighting the fire.
Houston County Sheriff Investigators are on the scene conducting an investigation.