Welcome back, Noyackers!

Big shift. As of May 5, 2025, the federal government officially restarted collections on defaulted student loans—after a 5-year pandemic pause.

That means over 5 million borrowers are already in the crosshairs. And yes, millennials are at the heart of this storm—holding nearly $500B in student debt, with an average balance of $33,000.

If you're behind, you're now at risk of:

• Wage garnishment (up to 15% of your income)

• Tax refund seizure

• Social Security offsets

• Credit score destruction

If you’re current, staying current just became mission critical.

This week, we’re laying out a 5-step plan to protect your paycheck, your credit, and your peace of mind.

Let’s turn a debt crisis into a wealth-building move.

🧭 Step 1: Check Your Loan Status (Like, Today)

Start here. Before anything else, get clarity.

✅ Log in to studentaid.gov 

✅ See if you’re delinquent (missed a few payments) or in default (no payments for 270+ days)

✅ Look for any collection notices in your email or mailbox

💡 Why it matters: Default status triggers collections—automatically. If you do nothing, the government can garnish wages, grab tax refunds, and ding your credit. Hard.

🧰 Step 2: Choose Your Way Out of Default

If you’re already in default, here are your 3 options:

Option 1: Loan Rehabilitation

• What it is: Make 9 monthly payments (as low as $5–$25) in 10 months

• Why do it: Removes default from your credit report = score boost

• Who it’s for: Those focused on long-term credit recovery

Option 2: Loan Consolidation

• What it is: Roll your defaulted loans into a new Direct Consolidation Loan
  (🧩 Pro Tip: What’s a Direct Consolidation Loan? It’s a student loan reset. Combine your loans into one, enroll in an IDR plan (or make 3 payments), and collections stop. The default stays on your credit, but you regain access to federal benefits fast.)

• Why do it: Fast-track back to repayment, access federal benefits. (🧩 Options: Income-Driven Repayment (IDR) Plans, Public Service Loan Forgiveness (PSLF), Deferment Options, Forbearance Options, Simplified Loan Management)

• Caveat: Default stays on your credit history

Option 3: Full Repayment

• What it is: Pay off the balance entirely or negotiate a settlement

• Why do it: Clears the default fast

• Best for: High earners with strong cash flow or windfalls like an inheritance

💡 Summary: Want a better credit score? Rehab. Need to move fast? Consolidate. Flush with cash? Repay in full and never look back

🚀 Step 3: Take Back Control

If you’re in default:

✅ Call your loan servicer (they’ll walk you through rehab or consolidation)
✅ Set up your payment plan
✅ Request a hardship hearing if your wages are already being garnished
✅ Make every payment on time—it’s how you regain your benefits

 💡 Reminder: Default doesn’t define you. This is a fixable problem.

🧠 Step 4: Stay Current, Stay Smart

If you’re not in default, great. Let’s keep it that way.

• Enroll in an IDR Plan
  Your payments adjust to your income. As low as $0/month if you're underemployed or job hunting.

• Set Up Auto-Pay
  Missed payments = back in the penalty zone. Automate and breathe easier.

• Try a payoff method

  1. Avalanche: Pay off highest-interest loans first = long-term savings

  2. Snowball: Start with smallest loans = quick motivation boost

💼 Use Your Work Perks
Your employer may offer up to $5,250/year tax-free for student loan repayment through 2025. Don’t leave that on the table.

📈 Track your credit
Use Credit Karma, Credit Sesame, or your bank’s app to monitor and catch errors early.

💡 Step 5: Make Student Debt Part of Your Wealth Plan

 Student debt doesn’t have to derail your financial future. In fact, managing it wisely can unlock serious wealth-building moves.

• Lower payments = more cash flow for retirement, savings, or investing

• Fix your credit to lower future borrowing costs

• Start investing early—even small amounts compound fast

• Explore alt investments like NOYACK’s NREIT II Fund, once your debt is under control

📣 This Week’s Move 

Log in to studentaid.gov.

✔ Check your loan status
✔ If you’re in default, start rehab or consolidation
✔ If current, enroll in IDR and explore your employer benefits

Then, take 5 minutes to share this plan with a friend who needs it.

 💡 Resources: The Federal Student Aid App is an easy way to check your loan and payment status. The Student Debt Crisis Center is another place where you can more free expert guidance. 

🧠 Final Word

 Millennials didn’t cause the student debt crisis. But we do control how we respond to it.

 And this? This is the comeback plan.

 You’ve got this—and we’ve got your back.

 See you next Sunday,
—CJ & The NOYACK Team
AccessGranted™