Student Loan Borrowers Beware: Wage Garnishment Resumes In May

Contributing sentiments towards policy:

62% : Simply put, wage garnishment is back for student loan borrowers in default, and those who don't take action could see it wreak havoc on their finances.
56% : This means the government will restart the Treasury Offset Program, allowing it to seize tax refunds and reduce Social Security benefits for those who owe defaulted student debt.
52% : The new guidance clarifies that standard collection tactics, including wage garnishments, tax refund interceptions, and Social Security offsets, will now be enforced to recover unpaid student loans.
52% : For example, if you bring home $500 a week, about $75 could be taken out of each paycheck and applied toward your student loan debt without you ever seeing it.
51% : Wage garnishment is one of the government's most powerful tools to collect defaulted student debt, and, notably, it doesn't require a court order.
46% : A 2019 study by The Institute for College Access & Success finds that 65% of defaulted student loan borrowers have incomes below 200% of the federal poverty line.
41% : Education Department To Resume 15% Wage Garnishment For Student Loan Borrowers In Default Federal student loan borrowers who have defaulted on their loans face harsh consequences.

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