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Student Loan Borrowers in Default Face Garnished Wages Again - Money

Advocates of student loan borrowers decried the decision to restart collections given that the Education Department is in disarray following layoffs of more than 1,300 department workers last month. The advocacy group Student Borrower Protection Center (SBPC) said that the Trump administration is throwing millions of borrowers “into the maw of government debt collection machine.”

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Indiatimes

Another crisis in US looms large as deadline nears for 5 million ...

Around 5 million defaulted student loans borrowers in the US will have their debts sent for collection starting May 5. The Education Department's move ends a five-year pause that began during the COVID-19 pandemic. Borrowers now face renewed financial stress, raising concerns about support and fairness in the student loan system. Debt Collections Return after Pandemic-era Pause

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Risingnepaldaily

Student loans to be referred to debt collection

Washington, Apr. 23: The Education Department will begin collection next month on student loans that are in default, including the garnishing of wages for potentially millions of borrowers, officials said Monday. Currently, roughly 5.3 million borrowers are in default on their federal student loans. The Trump administration's announcement marks an end to a period of leniency that began during ...

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Kens5

What to know about newest plan for student loan payments to resume ...

HOUSTON — Millions of student loan borrowers should act quickly, expert said, after the Trump administration announced it will resume the involuntary collection of student loans that are in ...

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Theintermountain

Student loans in default to be referred to debt collection, Education ...

For borrowers in default, one step to avoid wage garnishment is to get into loan rehabilitation, said Betsy Mayotte, president of The Institute for Student Loan Advisors. Borrowers must ask their loan servicer to be placed into such a program. Typically, servicers ask for proof of income and expenses to calculate a payment amount.

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Msnbc

Education Dept. plans to restart debt collections for defaulted student ...

The plan to resume debt collection for borrowers in default could put people in a precarious financial position amid a faltering economy.

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Local12

Student loans in default will be sent for collection; here's ... - WKRC

Borrowers who have student loans in default will receive communication from Federal Student Aid in the upcoming weeks with information about their options, according to the Education Department.

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Telegraphindia

US education department to resume student loan collections for ...

The U.S. Department of Education said on Monday it will resume collecting federal student repayments from borrowers in default from May 5 after a pause of more than five years. The resumption will impact more than 5 million borrowers who are in default, the Education Department said in a statement, adding that another 4 million borrowers were late in making payments.

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Witn

ECU students react to Department of Education plan to garnish wages of ...

The Department of Education says that 42.7 million borrowers owe student loan debt that has reach $1.6 trillion. In an article by the Department of Financial Protection and Innovation, ...

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Pbs

Student loan debt collections to resume for borrowers in default

The Trump administration is taking a different approach to student debt and many borrowers will notice it right away. In May, the Department of Education will begin collecting payments from ...

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