Federal Student Loan Borrowers in Default Could Soon Face Smaller Paychecks

Trump Set to Garnish Wages for Student Loan Defaults; The Debt Collective Lays Out Other Options

Starting in January, the Trump administration says it will garnish the wages of student loan borrowers who haven’t been able to make their payments for at least nine months. “It’s cruel and hostile to working people to turn the system on before we’re sure that we can run it in a compliant manner,” says Julia Barnard, higher education team lead at the Debt Collective and former student loan ombudsman at the Consumer Financial Protection Bureau. To

Federal student loan borrowers in default could soon face smaller paychecks

MCALLEN, Texas (ValleyCentral) — People with federal student loans who are in default could soon face wage garnishment, according to the U.S. Department of Education. The agency says it will begin sending notices to about 1,000 borrowers starting early next year. Beginning the week of January 7, borrowers with federal student loans in default may [...]

Trump Reactivates Wage Garnishments for Student Loan Delinquents and Returns Responsibility to the System - Gateway Hispanic

Starting in January, the Trump Administration will implement a measure that marks a turning point in the management of student loans in the United States: it will begin directly garnishing a portion of the wages of borrowers who fall behind on their payments. The decision, announced by official sources from the Department of Education, ends the temporary suspension of collections that had been in place since the beginning of the COVID-19 pandemi…

Charleston lawyer, councilman warns wage garnishment is coming for student loans

CHARLESTON, W.Va. – The federal Department of Education plans to start garnishing the wages of federal student loan borrowers in default in January, putting more than 5 million Americans at risk of losing part of their paycheck. That change caught the attention of Charleston attorney and city councilman Emmett Pepper, who believes that brings undue…