"The Trump administration said on Tuesday that it will begin garnishing the wages of student loan borrowers who are in default early next year. The department said it will send notices to approximately 1,000 borrowers the week of January 7, with more notices to come at an increasing scale each month. Millions of borrowers are considered in default, meaning they are 270 days past due on their payments."
"The department said it will begin collection activities, "only after student and parent borrowers have been provided sufficient notice and opportunity to repay their loans." In May, the Trump administration ended the pandemic-era pause on student loan payments, beginning to collect on defaulted debt through withholding tax refunds and other federal payments to borrowers. The move ended a period of leniency for student loan borrowers."
The administration will begin garnishing wages of student loan borrowers in default early next year, starting with notices to about 1,000 borrowers the week of January 7 and scaling up monthly. Borrowers are considered in default after 270 days past due, and the department must provide 30 days notice before garnishment. The department said collection activities will follow only after sufficient notice and opportunity to repay. The pandemic-era pause on federal student loan collections ended in May, and previous efforts to enact broad loan forgiveness were blocked by courts. Consumer advocates criticized the move as harmful amid affordability challenges.
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