As May comes to a close, USF students look forward to new beginnings. For many, that future comes with the weight of student debt. 

The Department of Education published a press release on April 21 announcing it would restart collections on defaulted federal student loans on May 5. Collections had been paused in March 2020 to provide relief during the COVID-19 pandemic.

This payment resumption could impact the over 2.5 million student borrowers who live in Florida. 

After graduation, most federal student loans have a six-month grace period, but the interest starts accruing immediately. 

U.S. college students don’t need any more stress, especially when it comes to student loans.

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The previous pause in collections served as a metaphorical safety net for loan payers, offering flexibility during a period of market decline. 

While it was inevitable that collections would resume, the sudden reversal, combined with a rough economic time, is unfair to the many students who may not be in a position to repay their student loans just yet. 

This policy, while seemingly reasonable, has the potential to harm thousands of Floridians, including USF alumni and students looking ahead to graduation. 

Some may bring up the relevant fact that loan borrowers willingly entered into this agreement. While true, some nuances must be considered. 

Many borrowers may not have had access to financial literacy resources or courses, so they may have a limited understanding of the terms they agreed to when taking out loans. 

Additionally, the press release gave borrowers less than two weeks’ notice before resuming collections after a pause of more than five years. 

This lack of information and quick resumption of collecting on defaulted loans creates a dangerous combination of factors that are likely to impact low-income defaulters and Florida.

Financial literacy is a key component in combating harmful policies such as this one. 

USF has resources such as the USF Health Financial Literacy and Debt Management webpage, which provides a list of links to relevant content and the option to book a one-on-one coaching session or presentation. 

Promoting financial literacy can help ease some of the individual burden. But for millions of borrowers, especially those with low incomes, the damage has already been done.

These borrowers now face the weight of student debt as they make critical decisions about their futures. 

“We live in a state, and even more so, a region where inflation and housing prices are really high, and any kind of change to a student’s financial base could potentially have pretty big ripple effects,” said Michael Snipes, an associate professor of instruction of economics at USF Sarasota-Manatee.

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Tampa is seeing fast price increases, with housing costs up 4.1% and medical care rising 6.3% as of March 2025, according to the US Bureau of Labor Statistics. 

Therefore, this policy has the potential to financially impact Tampa’s college students who may already be scrounging to make ends meet. 

For recent graduates, losing access to part of their paycheck isn’t just an inconvenience — it is destabilizing. 

This policy punishes low-income borrowers, then forces them to decide between survival and student loan repayment.