Governor Healey and Attorney General Campbell Remind Borrowers of Resources and Rights as Trump Administration Reinstates Involuntary Collection on Student Loans

 Governor Healey and Attorney General Campbell Remind Borrowers of Resources and Rights as Trump Administration Reinstates Involuntary Collection on Student Loans  

BOSTON – Governor Maura Healey and Attorney General Andrea Campbell are sharing resources and reminding student borrowers about their rights as the Trump Administration restarts involuntary collection on federal student loans in default through the Treasury Offset Program. This means the Treasury is starting to collect these debts by garnishing certain federal payments, including federal tax refunds, Social Security benefits, and certain retirement benefits. Federal collections are expected to impact upwards of 100,000 borrowers in Massachusetts. 

To help residents, the state is recommending that all borrowers, including those who know their loans aren’t in default, check on the status of their federal student loans and stay informed on the options available. Borrowers should also be aware of student loan debt relief scams, including phone calls, emails, notices, and/or texts from companies that charge fees to help borrowers pursue debt relief, access more affordable payment plans or resolve defaulted loans.  

Massachusetts borrowers who have a complaint against a student loan servicer or need help navigating their repayment options are encouraged to contact the Attorney General’s Student Loan Assistance Unit, here. 

“This is yet another example of the Trump Administration making life harder and more expensive for people. But here in Massachusetts, our focus remains on making higher education more affordable and accessible for all students,” said Governor Maura Healey. “As part of that, we want to be sure that students are aware of their rights and get the assistance and relief they deserve.” 

“As the Trump Administration resumes aggressive student loan collections, I want Massachusetts borrowers to know that this office is here to protect your rights, connect you with trusted resources, and fight back against predatory practices,” said Attorney General Andrea Campbell. “If you’re struggling with your loans or facing unfair treatment, the Attorney General’s Office stands ready to help you understand and navigate the available options.” 

“Massachusetts is committed to making sure that borrowers find the repayment options that work best for them and aren’t scammed into situations that push them deeper into debt,” said Lieutenant Governor Kim Driscoll. “Our administration will continue to support Massachusetts borrowers who are looking for student loan help.” 

“We have a national student debt crisis, and restarting federal loan collection efforts right now is going to disproportionately impact low-income borrowers and increase already expanding wealth inequality. I encourage all borrowers to check their federal student loan status and explore options available to help,” said Education Secretary Dr. Patrick Tutwiler. “In Massachusetts, we remain steadfast in our efforts to make higher education more affordable and accessible because we believe in its potential to enable all students to realize their dreams.” 

“Student loan borrowers have rights and options, even if they are in default. I encourage all borrowers to verify their loan repayment status and review the state resources made available for additional guidance,” said Commissioner of Higher Education Noe Ortega. “Massachusetts has made historic progress on college affordability. As the state works to protect borrowers, we are also telling those considering college about the financial aid programs that do not need to be paid back, like free community college and MASSGrant Plus, which applies at public four-year universities. These programs can reduce the debt burden, and for some students, avoid the need for student loans altogether.”   

The Healey-Driscoll Administration and AG Campbell’s office offered the following information for student borrowers looking for support:  

How can I ensure I get communications about my federal student loans? 

Update your contact information in your studentaid.gov account, including your email address. This is the U.S. Department of Education’s main website for federal student aid and serves as a vital tool for managing federal student loans. 

Borrowers are also encouraged to set up an online account with your loan servicer. Keep in mind that your loan servicer may have changed since the pandemic. If you previously opted to received electronic communications, then bills and other notices are only posted to your online account with your servicer – not sent by regular mail. 

What do I do if I have a federal student loan to repay? 

Borrowers that are in repayment status should receive multiple notifications of their student loan amount owed and repayment plan options, including income-driven repayment options, from their federally contracted loan servicer.  

To check an outstanding federal student loan balance, learn about loan repayment and loan forgiveness options, or make a payment, visit the U.S. Department of Education website: https://studentaid.gov/manage-loans/repayment/repaying-101 

How can I find out if my federal loans are in default?  

Borrowers who have not made a required payment in more than 270 days may have their loans in default. You can check on the status of your loan by reaching out to your student loan servicer: https://studentaid.gov/manage-loans/repayment/servicers  

How do I get my federal student loans out of default?  

Borrowers in default should contact the U.S. Department of Education’s Default Resolution Group and make a monthly payment, enroll in an income-driven repayment plan, or sign up for loan rehabilitation.  

To learn more about the federal student loan rehabilitation program and consolidation, visit StudentAid.gov/manage-loans or call 1-800-621-3115. 

What is Treasury offset? 

The U.S. Treasury can take your federal tax refunds and a portion of your Social Security payments or other federal benefits to pay a defaulted federal student loan. This is called Treasury offset. On May 5, 2025, the Trump Administration resumed Treasury offset for defaulted federal student loans. 

What do I do if I receive a notice of Treasury offset? 

Typically, before Treasury offset begins, you will receive a written notice. 

• You must take action by the deadline specified in the notice to prevent offset. 

• For most borrowers, the easiest way to avoid offset will be consolidation or rehabilitation out of default, but action must be taken quickly. 

• To prevent offset, a consolidation application must be submitted, or a rehabilitation agreement must be finalized and the first rehabilitation payment received before the deadline in the offset notice (typically 65 days from the notice date). 

In some cases, borrowers may want to make an objection to the offset. You can learn how to make an objection on the U.S. Department of Education’s website. 

How do I avoid scams? 

Look out for companies asking you to pay “enrollment,” “subscription,” or “maintenance” fees to enroll you in a federal repayment plan or forgiveness program. Borrowers do not have to pay to receive help with loan services, including consolidating federal student loans or applying for an income-driven repayment plan. Your student loan servicer can help you with this for free.  

Never give your personal information (like your FSA ID and password, social security number, bank account information) or money to unidentified callers, or to a link provided via text or email. If you are suspicious of a company contacting you, contact your loan servicer or the U.S. Department of Education’s Default Resolution Group at 1-800-621-3115. More tips on spotting scammers can be found on the Consumer Financial Protection Bureau’s fraud and scams page.