Federal student loan borrowers in default could face wage garnishment

Student-loan borrowers behind on payments are getting a major break, the US education secretary says

Education Sec. Linda McMahon said that wage garnishments for defaulted student-loan borrowers are on pause.Chip Somodevilla/Getty ImagesEducation Sec. Linda McMahon said that wage garnishments for defaulted student-loan borrowers are on pause.It follows a December announcement that garnishment notices were resuming in early January.It's unclear when the pause was implemented and how long it will last.Student-loan borrowers in default might not f…

Student loan wage garnishment returns for borrowers in default

Tamike Miller is already working two jobs, watching prices climb while her paycheck stays the same. Now she’s bracing for another blow: the restart of federal student loan collections that could reduce her wages in the months ahead. “I need every penny of my paycheck,” said Miller, who struggles to cover basic expenses. “The economy is so expensive, and my wages aren’t covering it.” The U.S. Department of Education began sending default notices …

Federal student loan borrowers in default could face wage garnishment

Borrowers who have fallen behind on their federal student loan payments could soon see their paychecks shrink. If you still owe on your student loan and you haven’t been keeping up with your payments, you could get a letter in the mail stating that your wages could soon be garnished.The federal government started notifying borrowers in default last week. Many warning letters have already been sent, and more are on the way, according to Jennifer …

Late on your student loans? There are ways to avoid garnishment. - Open Campus

After a nearly six-year pause, the U.S. Department of Education will again garnish the wages of student loan borrowers who have fallen into default — a move that would see 15% of a paycheck removed.  Notices were said to go out on Jan. 7 to an initial pool of 1,000 people — a number that officials said will increase in the coming months. With over 5 million borrowers currently in default and many more on their way, student loan administrators an…

Late on your student loans? There are ways to avoid garnishment.

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