State of Connecticut Department of Banking

The Department of Banking has moved! On Monday, November 24, 2025, the Department of Banking relocated its offices to 280 Trumbull Street in Hartford.

May 2, 2025

Connecticut Student Loan Ombudsperson Reminds Residents that U.S. Department of Education is Resuming Student Loan Collections on May 5, 2025

HARTFORD - Connecticut Student Loan Ombudsperson Michelle Jarvis-Lettman is reminding Connecticut residents that the U.S. Department of Education is planning to resume collections of federal student loans that are in default beginning May 5, 2025. Collection activity on defaulted student loans had been paused due to the COVID-19 pandemic. Federal student loans enter default status after 270 days (about 9 months) of non-payment.

“Borrowers need to take action on their federal student loans if they are in a default status,” said Ombudsperson Jarvis-Lettman. “A default student loan can create serious consequences for a borrower including wage garnishment and derogatory marks on credit history.” This could make it more difficult to obtain other types of credit like car loans and mortgages.  Loans in default may also result in garnishments of tax refunds and social security payments.  

Acting now can help avoid serious financial consequences and ensure a smoother return to repayment. For further information or assistance, borrowers can contact their loan servicer or the Default Resolution Group. 

Key Information for Connecticut borrowers:

  • Resumption Date: Collections on defaulted federal student loans will restart May 5, 2025. Email communications will be sent from Federal Student Aid.
  • Borrower Support: The U.S. Department of Education is actively encouraging struggling borrowers to take steps now to avoid adverse consequences such as wage garnishment or tax refund withholding.
  • Available Resources: U.S. Department of Education is expanding outreach, providing tools through Federal Student Aid (FSA), and encouraging borrowers to explore income-driven repayment (IDR) plans, forgiveness programs, and deferment or forbearance options if eligible.
  • Borrowers should log into their StudentAid.gov account to review loan status, explore repayment plans, and take immediate action if their loans are in default.

Do not ignore a default notice. The consequences can become greater if action is not taken.

# # # 

 
Contacts:

Michelle Jarvis-Lettman 
Phone: 860-240-8122
dob.studentloanombuds@ct.gov

Matt Smith
203-996-1241
matthew.smith@ct.gov