As the U.S. Department of Education prepares to resume collections on defaulted federal student loans starting May 5, 2025, more than 5 million borrowers are expected to feel the financial pinch. But the impact isn’t confined to personal budgets — it’s transforming American workplaces in ways that both employees and employers are just beginning to understand.

 

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How Student Loan Collections Are Quietly Transforming America’s Job Market in 2025