> Education Department says student loans in default to be referred to debt collection
Education Department says student loans in default to be referred to debt collection
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Starting next month, the Education Department says student loans that are in default will be referred for collections.
Roughly 5.3 million borrowers are in default on their federal student loans and soon could be subject to having their wages garnished.
Referrals for collection had been put on hold since March 2020 because of the COVID-19 pandemic, when the U.S. government also paused federal student loan payments and interest accrual as a temporary relief measure. That grace period was extended multiple times by the Biden administration and ended in October.
https://www.wthr.com/article/news/nation-world/student-loans-default-heres-what-to-know/507-2cdef118-0bf7-4e3a-8866-c051d33948fc