UW–Madison’s Nick Hillman, a professor in the School of Education’s Department of Educational Leadership and Policy Analysis, was recently quoted in Time magazine about the return of federal student loan collections.
The article, headlined “What to Know About ‘Involuntary Collections’ If You’re a Student Loan Borrower,” discusses the U.S. Department of Education’s plan to resume involuntary collections — including wage garnishment and tax refund offsets — beginning May 5. Hillman provided commentary on how borrowers can navigate the repayment process.
“All of the responsibility is on the borrower,” Hillman said, emphasizing how difficult it can be for individuals to navigate a system he describes as overly complex and fragmented. He encouraged borrowers to be proactive by identifying their federal loan servicer and reaching out directly to explore repayment options. He also discussed the end of the year-long “on-ramp” period for missed payments, stressing that as of Oct. 2024, “the ramp was closed, and it’s sort of business as usual.”
Hillman, who is also the director of UW–Madison’s Student Success Through Applied Research (SSTAR) Lab, added that the system’s confusion has left many borrowers unclear about their repayment status. “You have like a third of borrowers who are current, they’re making payments. You have a third of borrowers who are either in some sort of deferment or forbearance … and the other third are either going for or (already) in default,” he said. “It’s massive, because the loan repayment system is fundamentally broken.”
Read the full article in Time.