Starting next month, borrowers who didn’t honor the conditions of federally backed student loans should notice smaller paychecks, a Department of Education senior official said on Dec. 23.
Notices of wage garnishment will be sent to about 1,000 defaulted borrowers the week of Jan. 7, and the number of notices is expected “to increase in scale on a month-to-month basis,” the senior official said in an email to The Epoch Times.
Pay garnishment for student loans was initially paused in early 2020 as part of COVID-19 relief measures and extended multiple times over the years.
After student and parent borrowers are provided sufficient notice and opportunities to repay their loans, collection activities are required under the Higher Education Act of 1965 and the Debt Collection Improvement Act of 1996….
Pay Garnishments for Defaulted Student Loans to Begin in January
