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Wage Garnishment for Defaulted Student Loan Borrowers Begins in January

KVIA••CNN Newsource
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Starting January, the Trump administration will implement wage garnishment for approximately 1,000 student loan borrowers in default, with notices expected to be sent out the week of January 7. This action follows the resumption of federal student loan collections after 270 days of non-payment. With over 5 million borrowers in default and nearly 4 million more delinquent, this policy could significantly impact millions. Critics argue that this approach adds undue stress to borrowers already facing financial challenges. Additionally, changes to borrowing limits and repayment options are anticipated, affecting many students and their families.

Key Details: • Notices for wage garnishment will begin the week of January 7. • Over 5 million borrowers are currently in default. • Borrowers in default will lose access to deferment and repayment plan choices. • Contact the Default Resolution Group for assistance with student loans.

education financial-aid student-loans garnishment default

People & Organizations

Donald TrumpDepartment of EducationPersis YuProtect Borrowers

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