The Education Department announced it is restarting the collection of payments on defaulted student loans. Here’s what to know about the decision and how borrowers can protect themselves.

The Trump administration announced Monday it will resume debt collections for federal student loan borrowers who have defaulted on their debt—after collections have been on pause since 2020—putting millions of borrowers at risk of having federal payments or portions of their salaries withheld in the coming months.

They’re seeing their credit scores drop, which will make it more difficult to buy a car or rent a home. And that has implications for the already slowing economy.