Overdue Student Loans? 5 Tactics Michigan Debt Collectors Can’t Use

Brace yourself, Michigan—student loan collections are officially back, and collectors are warming up their dialing fingers.  Let's talk about what debt collectors can legally do in Michigan—and what they absolutely cannot.

RELATED: Michigan's Debt Statute of Limitations: Protecting Your Credit

After five blissful years of what Nerd Wallet calls COVID-19's 'administrative forbearance,' the feds have resumed collection efforts on defaulted student loans as of May 5, 2025. And if you're behind, you're not alone—CBS reports millions are.

What Debt Collectors Can Do in Michigan

Here's a look at what debt collectors are legally allowed to do in Michigan, according to Michigan Legal Help:

• Sue you for a debt if it's within 6 years of your last payment
• Get a judgment that allows them to garnish your wages, snatch your tax refund, and even dip into your Social Security
• Renew the judgment and chase you, legally, forever
• Sell your debt to another collection agency, which resets the clock

You must respond if you are sued, even over an ancient debt. Statutes of limitations are an excellent defense, not an automatic debt shield. If you ignore it, you could lose by default, and then, boom, judgment granted for the collection agency.

What They Cannot Do in Michigan

Mutual respect is key between a debt collector and a debtor. Ultimately, someone owes someone else money, and it needs to be collected, but it needs to be done respectfully by both parties. With that in mind, here's what debt collectors aren't allowed to do in Michigan:

• Threaten to throw you in jail
• Swear, lie, or say that you've been sued when you haven't
• Call you at work after you tell them not to
• Tell your boss, best friend, grandma, or cousin about your debt.
• Ignore a written dispute if you send it within 30 days

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The bottom line is, just because your debt collection has been napping doesn't mean it's gone. With student loan collection back in action, that ghost is coming back to haunt you. Don't ignore it. Get ahead of it.