"The Trump administration said on Tuesday that it will begin garnishing the wages of student loan borrowers who are in default early next year. The department said it will send notices to approximately 1,000 borrowers the week of January 7, with more notices to come at an increasing scale each month. Millions of borrowers are considered in default, meaning they are 270 days past due on their payments. The department must give borrowers 30 days notice before their wages can be garnished."
"The department said it will begin collection activities, "only after student and parent borrowers have been provided sufficient notice and opportunity to repay their loans." In May, the Trump administration ended the pandemic-era pause on student loan payments, beginning to collect on defaulted debt through withholding tax refunds and other federal payments to borrowers."
The Education Department will start garnishing wages of student loan borrowers in default early next year, with initial notices to about 1,000 borrowers the week of January 7 and scaled notices thereafter. Millions of borrowers are in default, defined as 270 days past due, and borrowers must receive 30 days' notice before garnishment begins. The department stated collection activities will occur only after borrowers receive sufficient notice and an opportunity to repay. The pandemic-era payment pause ended and collection resumed through measures such as withholding tax refunds and other federal payments. Advocacy groups criticized the move as harmful to struggling families.
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