CHICAGO (WLS) — For five years, Americans with federal student loans didn’t have to worry about possible debt collection.

They were given a break, because many people faced financial hardships during the COVID-19 pandemic.

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But now, things have changed.

The Trump administration is resuming collection of loans that are in default.

According to the U.S. Department of Education, about 5 million borrowers have defaulted on their student loans.

And millions more are at least 90 days late on their payments.

“I believe they were prioritizing various essential things at that time. Rent prices have surged dramatically. Car insurance and other expenses have also gone up,” mentions Donna Rasmussen, the executive director of the Consumer Credit Counseling Service of Northern Illinois. “We frequently hear from people preferring debt over homelessness. They prioritize necessities like food and car payments. They’re not going to lose their home for missing a student loan payment.”

Rasmussen says the average federal student loan debt amount, in both private and federal loans, is about $38,500.

For those with outstanding student loan debt, how do they know if they’re in default?

“If you haven’t made a payment in 90 days, it’s likely you know you’re in default. You’ll receive a notice, either through mail or email, detailing your options,” Rasmussen explained.

One way the federal government might seek to recover the money owed is through wage garnishment.

Rasmussen notes that with other debt types, this is usually handled via a court order, “However, for student loan debt, going to court isn’t necessary. You’ll be informed about wage garnishment through a notice.”

In addition to wages, they can also garnish Social Security payments and tax refunds.

Click here for more information about Consumer Credit Counseling Service of Northern Illinois.