"The policy is expected to initially impact about 1,000 borrowers, and the number is to grow over time. The notices will increase in scale on a month-to-month basis, the spokesperson said. Al Jazeera asked the department for clarification on how borrowers were selected for the first round of garnishments, how many additional people may be affected and the rationale behind those decisions."
"Under federal law, the government may garnish up to 15 percent of a borrower's take-home pay as long as the individual is left with at least 30 times the federal minimum wage per week. The federal minimum wage is currently $7.25 an hour, a rate that has remained unchanged since July 2009. About one in six American adults holds student loan debt, which totals about $1.6 trillion."
The federal government will resume garnishing wages from some borrowers in default on student loans, with notices commencing January 7. The first round is expected to affect about 1,000 borrowers, with the number increasing month to month. The department said collections occur only after borrowers receive sufficient notice and opportunity to repay, though it did not clarify selection criteria for initial garnishments. Federal law permits garnishing up to 15 percent of take-home pay provided the individual retains at least 30 times the federal minimum wage per week. High overall student debt and recent employment weakness add economic pressure for many households.
Read at www.aljazeera.com
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