"President Donald Trump's Department of Education confirmed to Business Insider on Tuesday that it will begin sending wage garnishment notices to defaulted student-loan borrowers in early January. The department said that notices will go out to approximately 1,000 defaulted student-loan borrowers the week of January 7, and the notices "will increase in scale on a month-to-month basis." The garnishment occurs only after borrowers have received notice and an opportunity to repay their loans, the department said."
"This update follows the department's announcement in April that it would restart collections on defaulted student loans in May, after a five-year pause. Over 5 million student-loan borrowers are in default, according to department data, which typically occurs after a federal borrower has payments that are more than 270 days past due. Business Insider wants to hear about the challenges, successes, and unique experiences you're facing with your student loans."
The Education Department will resume wage garnishment for defaulted federal student-loan borrowers, beginning with notices to about 1,000 borrowers the week of January 7 and expanding monthly. Notices will be sent after borrowers receive formal notice and an opportunity to repay. Collections on defaulted federal student loans restarted in May following a five-year pause. More than 5 million borrowers are currently in default, a status that generally follows payments being more than 270 days past due. Rising delinquencies could push additional borrowers into default, exposing them to wage seizure and other collection actions.
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