For wage garnishment, turning that system on takes a little bit longer, so people probably won't get those notices for several weeks.

And the process probably won't start until the summer.

But again, keep an eye out for it and contact the default resolution group, do what you can to get out of default.

And so you can avoid that.

Hey, everybody. Thanks so much for joining us today on Her Money. I'm Gene Chatsky. And we are

recording this episode during the first week of May, which is also not at all coincidentally,

the week that the Trump administration officially restarted collections on defaulted student loans, marking the end of a five-year pause, a historic five-year pause that started back in his first term.

And during this pause, borrowers who were going through the pandemic like the rest of us,

at least at the beginning, were not penalized for falling behind on repayment.

That continued for one year, two year, three, four, five, and now the administration is saying it is time to pay up. And if you don't,

you could see your wages garnished, your social security payments reduced, even your credit

scores take a hit. This all comes at a time when we are, many of us, feeling really worried

about the economy. We're bracing ourselves

for a possible recession that, by the way, the CEO of Pimco, which is a big investment house,

said last week that we may already be in. And all of this flip-flopping on student loan

repayment has made people wonder,

is this really happening? Is it true this time around? Or will the administration walk this back?

To help us make sense of all of it, we've got student loan expert Jillian Berman. She is

assistant managing editor for News and enterprise at MarketWatch.

She's also got a great new book out. It's called Sunk Cost. Who's to blame for the nation's broken student loan system and how to fix it?

We're going to take a quick break. If there's one app you need on your phone in 2025,

it's upside. It is one of the smartest tools out there for getting a little something back

...