Starting next month, the Education Department says student loans that are in default will be referred for collections.

Starting next month, the Education Department says student loans that are in default will be referred for collections.

Interest on federal student loans has started accumulating again after a three-year pause because of the COVID-19 pandemic.

The Supreme Court has ruled the Biden administration overstepped its authority in trying to cancel or reduce student loan debt, effectively killing the $400 billion plan.

An estimated 43 million borrowers who could have seen their student loan balances decreased or erased will now resume their original payments in the fall, following the Supreme Court’s decision to strike down the Biden administration’s debt forgiveness plan.