• The U.S. Department of Education will resume collecting on defaulted student loans on Monday.
• More than 5 million borrowers are currently in default, and that total could swell to roughly 10 million borrowers within a few months, according to the Trump administration.
• The federal government has extraordinary collection powers on its student loans and it can seize borrowers' tax refunds, paychecks, and Social Security retirement and disability benefits.

The U.S. Department of Education is set to restart collection efforts on defaulted student loans on Monday — putting millions of borrowers at risk of wage garnishment and other consequences.

Collection activity on federal student loans has been paused for roughly five years, a remainder of Covid-era policies meant to offer relief to borrowers.

The Trump administration's focus on recouping payments from defaulted student loan borrowers marks a change from the Education Department's strategy under former President Joe Biden, which centered more on providing borrowers with additional options for getting current on their bills.

"American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies," said U.S. Secretary of Education Linda McMahon in a statement.

More than 42 million Americans hold student loans, and collectively, outstanding federal education debt exceeds $1.6 trillion. More than 5 million borrowers are currently in default, and that total could swell to roughly 10 million borrowers within a few months, according to the Trump administration.

The federal government has extraordinary collection powers on its student loans and it can seize borrowers' tax refunds, paychecks and Social Security retirement and disability benefits.

Borrowers face plan changes, long waits for help

Collection activity on federal student loans has mostly been paused for half a decade. During that period, there have been sweeping changes and disruptions to the lending system.

Millions of borrowers who signed up for the Biden administration's new repayment plan, known as SAVE, were caught in limbo after GOP-led lawsuits managed to get the plan blocked in the summer of last year. Many of those borrowers will now have to switch out of a Biden-era payment pause and into another repayment plan that will spike their monthly bill.

In recent months, the Trump administration has eliminated the forgiveness provision from some student loan repayment plans.

It also terminated staff at the Education Department, including many of the people who helped assist borrowers. Now some student loan borrowers report waiting hours on the phone before being able to reach someone about their debt. (The Trump administration has told defaulted borrowers to contact the department for options on getting current.)

"The timing of the layoffs is unfortunate, given the need for borrowers to get help," said higher education expert Mark Kantrowitz, who added that he's heard from people stuck waiting on hold as long as eight hours to speak with someone at the department or their loan servicer.

Borrowers in default may see credit scores decline

Restarting collections while the federal student loan system is facing so much uncertainty "will further fan the flames of economic chaos for working families across this country," said Mike Pierce, executive director of the Student Borrower Protection Center.

In addition to garnished paychecks and benefits, the millions of borrowers who are already late on their payments may see their credit scores tank by as much as 129 points as the Education Department ramps up collection activity, VantageScore recently wrote.

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Meanwhile, the Federal Reserve predicted in March that some people with a delinquency could see their scores fall by as much as 171 points. Credit scores typically range from 300 to 850, with around 670 and higher considered good.

Lower credit scores can lead to higher borrowing costs on consumer loans such as mortgages, car loans and credit cards.

"We've been seeing clients with delinquent accounts who reached out after noticing a drop in their credit scores," said Carolina Rodriguez, director of the Education Debt Consumer Assistance Program in New York.

She said one client hasn't made a payment on her student debt since last year because she can't afford her $200 monthly bill.

"She's making $45,000 and living in New York City," Rodriguez said. "Every month, she's in the red."

Are you at risk of collection activity because you're behind on your student loans? If you're willing to share your experience for an upcoming story, please email me at annie.nova@nbcuni.com