Yes, the Department of Education Will Garnish Your Wages for Defaulted Student Loans. Here's What to Do
- The Education Department will refer defaulted federal student loans for collections starting next month.
- This action ends a pause on collection referrals in place since March 2020 due to the pandemic.
- Involuntary collection, including wage garnishment and tax refund interception, will begin May 5.
- Roughly 5.3 million borrowers are currently in default on their federal student loans.
- Borrowers in default face serious consequences but have options like loan rehabilitation to resolve their status.
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Benefits could be withheld from 5.3 million defaulted student loan borrowers, feds say
By the end of summer, 5.3 million defaulted student loan borrowers may lose federal wages and benefits, the Department of Education announced.
·Columbus, United States
Read Full ArticleGoodbye to Relief? This change in student loans will impact millions of young people in the United States
During his first term as president of the United States, Donald Trump suspended the collection of most student loans and the Biden administration tried to remit much of the student debt until the Supreme Court ruled that his plan was unconstitutional. Now, a new change will impact millions of borrowers since May 5. In the United States, if individuals, companies, states or entities do not pay their debts to the federal government in time, they b…
·Buenos Aires, Argentina
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Total News Sources193
Leaning Left29Leaning Right20Center94Last UpdatedBias Distribution66% Center
Bias Distribution
- 66% of the sources are Center
66% Center
L 20%
C 66%
14%
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