Student Loan Collections Resume as Pandemic Forbearance Ends
Millions of student loan borrowers are facing renewed collection efforts, including potential wage garnishment and seized tax refunds, as pandemic-era forbearance ends. New Mexico is noted as one of the states with a high default rate.
Albuquerque Santa Fe, NM, November 12, 2026 —
Millions of individuals with federal student loans are now subject to intensified collection activities following the conclusion of the pandemic-era administrative forbearance period. This shift means borrowers who have not made payments are at risk of facing measures such as wage garnishment and the seizure of tax refunds.
The end of the broad pause on student loan payments, which was put in place at the beginning of the COVID-19 pandemic, has reinitiated the standard processes for managing delinquent and defaulted loans. These processes include actions aimed at recovering owed funds from borrowers who fail to resume payments.
Among the states experiencing a notable impact, New Mexico is identified as having a high default rate among its student loan borrowers. Specific figures detailing the number of borrowers affected nationwide or the precise default rate in New Mexico were not provided in the available information.
The renewed collection efforts signal a significant change for borrowers who have relied on the extended period of suspended payments. The potential consequences, including wage garnishment and the interception of tax refunds, represent serious financial implications for affected individuals and households.
Further details regarding the specific timelines for these collection efforts to commence or the exact mechanisms being employed were not specified.
Story summarized from the original created by Tim Henderson on sourcenm.com, see more information here.
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