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After a five-year pause, the government is restarting involuntary collections on defaulted federal student loans. The resumption of student loan payments marks a major shift for millions of borrowers, especially women. They carry most of the country’s student debt and typically earn less than men, both of which can make repaying loans harder.
Key Takeaways
- Involuntary collections on defaulted student loans are resuming after a five-year pause.
- Women, who held almost two-thirds of all student loan debt in 2021, could be hit harder.
- Lower earnings, caregiving responsibilities, and racial wage gaps make repayment tougher for many women.
Background on Student Loan Payments
Student loans were first paused in early 2020 to provide relief during the pandemic. The pause stopped payments and interest on most federal student loans, and it was extended several times under both the first Trump administration and the Biden administration.
After over three years, the pause officially ended on Sept. 1, 2023. Borrowers were given a 12-month “on-ramp” period during which missed payments weren’t considered delinquent, reported to credit bureaus, placed in default, or sent to collection agencies. As of May 5, 2025, that grace period has passed.
Warning
If you’re in student loan default, the government can now garnish your wages or seize your tax refund and Social Security payments.
Social and Demographic Factors
Women held nearly two-thirds of the nation’s $1.6 trillion student debt in 2021, according to the American Association of University Women. With collections restarting, many women who relied on the payment pause now risk losing a portion of their paychecks or certain federal benefits if their loans aren’t in good standing.
Additionally, women often earn less than men, leaving them with fewer resources to repay their debts. Faced with suspended careers and caregiving demands, women take about two years longer to pay off their loans, which are approximately $2,000 higher on average compared to those of their male counterparts. Longer repayment terms and bigger balances also typically lead to paying more in interest.
Race adds another dimension to this issue. Black women, for example, borrow more for school than anyone and face a steeper wage gap. A 2022 study from the Education Trust found that 12 years after college, White men had paid off nearly half of their loan balances, while Black women owed 13% more than they’d originally borrowed.
The Bottom Line
As collections restart, now is the time for borrowers in default to explore their repayment options. Income-driven repayment (IDR) plans and loan forgiveness programs may be able to offer some relief.
At the same time, there’s still work to be done. Policymakers must take steps to close the gender wage gap and address other systemic issues that cause student debt inequality.
