Around 9.5 million people - 1 in 5 federal student loan borrowers - are in default, meaning they are more than nine months behind on their payments.
The Trump administration said on Tuesday that it will begin garnishing the wages of student loan borrowers who are in default early next year.
The debt includes mortgages, car loans, credit cards and student loans.
The Trump administration has agreed to resume student loan forgiveness for an estimated 2.5 million borrowers who are enrolled in certain in certain federal repayment plans following a lawsuit from the American Federation of Teachers.
Already diminished by cuts by the Trump administration, the U.S. Education Department will see more of its work come to a halt due to the government shutdown.
Nearly 8 million borrowers will see their loan balances start increasing again on August 1.