The U.S. Department of Education is sending notices to those late on federal student loan payments to begin repayment. The Department said 42.7 million borrowers owe more than $1.6 trillion in debt.
More than 5 million borrowers in default — those who have not made a payment in more than 360 days — could see wage garnishments and strikes against their credit scores.
Almost 15 percent of Hoosiers have student loan debt, according to data from the Education Data Initiative.
The announcement came last month following a five-year pause on payments, enacted by President Trump in March 2020.
The department said 38 percent of borrowers are repaying their loans.
Some borrowers may be enrolled in an interest-free forbearance or deferment plan. These borrowers, as well as current or recently graduated students, do not need to make payments at this time.
“The Biden Administration misled borrowers: the executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear,” U.S. Secretary of Education Linda McMahon said in the announcement.
The Department of Education is encouraging borrowers in default to consider loan resolution options through the student aid website.
