US EditionTrump administration to start seizing pay of defaulted student loan borrowers in January
The Trump administration will send initial wage garnishment notices to about 1,000 defaulted borrowers in January, with numbers increasing monthly as part of debt collection efforts.
- On Jan. 7, the U.S. Department of Education will send roughly 1,000 borrower notices as it resumes garnishing wages of defaulted student-loan borrowers.
- The collections restart follows a pandemic-era relief program pause that halted garnishment for years, while about 5.5 million borrowers remain in default and defaulted and delinquent borrower totals could rise.
- Under federal collection rules, the Education Department can send borrowers a 30-day notice before ordering employers to withhold up to 15% of after-tax income and seize federal tax refunds and Social Security benefits.
- Experts say timing could compound financial strain on low- and middle-income borrowers by coinciding with rising healthcare costs, while Education Secretary Linda McMahon argued garnishment pushes borrowers toward regular repayment.
- The Education Department completed an IBR update removing the partial financial hardship rule, expanding eligibility to higher-income borrowers and encouraging those previously denied IBR to reapply online while pursuing new borrowing caps and a Repayment Assistance Plan.
186 Articles
186 Articles
Trump administration targets student loan borrowers in default
The Trump administration is set to take action against student loan borrowers who are in default, according to an U.S. Department of Education (DOE) official. The government will begin garnishing wages of those who have not made a student loan payment in at least 270 days. First notices will be sent to borrowers in default
Education Department to Start Garnishing Wages of Defaulted Student Loan Borrowers
(ZeroHedge)—As we and others have noted several times over the last year, the US government will be garnishing the wages of student loan borrowers in default – with actual garnishment now set to begin in January, CNBC reports. A spokesperson for the US Department of Education confirmed the plan, which will mark the first time a portion of borrowers’ paychecks have actually been at risk since the beginning of the Covid-19 pandemic, when collectio…
Pay Garnishments for Defaulted Student Loans to Begin in January - The Thinking Conservative News
Starting next month, borrowers who didn’t honor the conditions of federally backed student loans should notice smaller paychecks, a DOE senior official said. The post Pay Garnishments for Defaulted Student Loans to Begin in January appeared first on The Thinking Conservative News.
Pay Garnishments for Defaulted Student Loans to Begin in January
Starting next month, borrowers who didn’t honor the conditions of federally backed student loans should notice smaller paychecks, a Department of Education senior official said on Dec. 23. Notices of wage garnishment will be sent to about 1,000 defaulted borrowers the week of Jan. 7, and the number of notices is expected “to increase in scale on a month-to-month basis,” the senior official said in an email to The Epoch Times. Pay garnishment for…
Idaho Capital Sun
Trump administration to garnish wages for defaulted student loans
The U.S. Education Department said it will start garnishing wages from student borrowers in default. (Catherine Lane/Getty Images)WASHINGTON — President Donald Trump’s administration will start garnishing the wages of student loan borrowers in default beginning early next year, the U.S. Education Department said Tuesday. In an email, the department said it expects the first notices to be sent to roughly 1,000 borrowers in default the first full…
Trump administration to garnish wages for defaulted student loans • Washington State Standard
The U.S. Education Department said it will start garnishing wages from student borrowers in default. (Catherine Lane/Getty Images)WASHINGTON — President Donald Trump’s administration will start garnishing the wages of student loan borrowers in default beginning early next year, the U.S. Education Department said Tuesday. In an email, the department said it expects the first notices to be sent to roughly 1,000 borrowers in default the first full…
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