The Education Department's recent announcement of involuntary collections for defaulted student loans has left many borrowers uncertain about the status of their loans. Approximately 5.3 million individuals could face wage garnishment as the department resumes these collections. Compounding the issue, a federal court's decision blocked parts of the government's income-driven repayment plans, which aim to assist lower-income borrowers. While applications for these repayment plans have reopened, significant delays are anticipated in processing due to earlier shutdowns. Advocates stress the need for better communication amidst the turmoil, highlighting the challenges borrowers face in obtaining support.
The government has complicated student loan repayment with involuntary collections on defaulted loans, while confusion mounts over delayed income-driven repayment applications.
Applications for income-driven repayment plans have reopened, but processing delays remain due to a federal court's blocking of parts of the Biden administration's SAVE plan.
Collection
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