More than 200,000 student loan borrowers and their supporters are calling on Congress to pause federal student loan payments. The push comes as millions of borrowers in default face the risk of losing part of their paychecks and tax refunds next year.
The Petition
A petition from the Student Debt Crisis Center asking for a pause on all federal student loan payments and interest had collected 209,359 signatures as of Thursday afternoon.
Borrowers and advocacy groups are urging Democratic leaders in Congress to use their new majorities in both the House and Senate, won in the November 3 election, to secure a payment pause.
Total student loan debt in the U.S. has reached about $1.66 trillion, according to the Federal Reserve Bank of New York.
Defaults Are Climbing
More than 9 million borrowers are now in default. Defaults picked up again in late 2025 and early 2026. In those two quarters alone, 13% of student loans in Louisiana and Mississippi went into default, and at least 5% did in every state, based on New York Fed data.
Private Debt Collectors Are Coming Back
The federal government is moving to bring back private debt collectors for defaulted student loans for the first time in more than six years. Defaulted loans are being moved to the Treasury Department, which can hire private contractors to collect.
Betsy Mayotte, president of The Institute of Student Loan Advisors, said she expects collections to begin next year.
What Collections Could Mean
According to student aid expert Mark Kantrowitz, the government can take up to 15% of a borrower’s disposable pay without a court order. It can also seize a full tax refund and cut up to 15% of Social Security benefits, as long as at least $750 a month remains.
What Borrowers Can Do
If your loan is in default, you can apply to rehabilitate it through StudentAid.gov before you receive a garnishment notice. Acting early is the best way to protect your income.