COLORADO SPRINGS — The U.S. Department of Education announced Monday that it will begin collections on defaulted loans starting May 5.
WATCH: Student loans in default to be referred to debt collection
It said more than five million borrowers have not made a monthly payment in over 360 days and sit in default.
U.S. Secretary of Education Linda McMahon released the following statement:
"American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies."
Many students who need to pay back money are now scrambling to figure out how to pay off their debt.
"Education should be the number one priority for this country," said Eric Walker, a graduate student at the University of Colorado, Colorado Springs (UCCS).
Walker says federal aid has helped him pursue his educational goals. He says having a pause on student loan payments starting in 2020 was a huge help.
"People who live in the poverty community... they live paycheck to paycheck. That burden isn't just on parents, for future students," said Walker.
UCCS Senior Chris Nava says he's been paying for his loan, but he's worried about others who are financially independent from their parents.
"It's going to hurt them a little bit, especially continuing to earn their degrees or gaining even higher education," said Nava.
Colorado College's professor Christopher Hunt says he has significant student loan debt from earning his Ph.D.
"My first thought was... how do they expect people to pay this back and threaten to garnish wages?" said Hunt.
As the new deadline approaches, concerns about student loans are growing.
"Honestly, probably paying them off for the rest of my life," said Walker.
The best places to find loan information are a financial aid office, or on the Department of Education's website.
WATCH: Best places to find student loan information following recent announcement
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