Expert breaks down what start of student loan default collection means for borrowers

HOUSTON, Texas (KTRK) -- On Monday, the Trump administration began collections on defaulted student loans. It's part of a broader effort to roll back loan forgiveness policies from the Biden administration and dismantle the Department of Education.

Michael Neuenschwander from Outlook Wealth Advisors joined Eyewitness News to break down what this means for roughly 5.3 million borrowers.

He said it's important to know what you owe, whether you're in default, and you should also calculate how much you're able to pay.

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It's better to pay something than pay nothing and risk having wages or benefits garnished.

Neuenschwander also warned borrowers to avoid taking out private loans.

He suggests working with the agency that services your loan to get out of default and pay what you can afford.

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