US — Education Department To Start Garnishing Wages Of Defaulted Student Loan Borrowers In January
A spokesperson for the US Department of Education confirmed the plan, which will mark the first time a portion of borrowers’ paychecks have actually been at risk since the beginning of the Covid-19 pandemic, when collection activity was halted.
More than 42 million Americans have student loan debt, which now exceeds $1.6 trillion. There are currently more than 5 million student loan borrowers in default, a number which could explode to roughly 10 million borrowers soon, the Education Department said in April.
Starting the week of Jan. 7, the Education Department expects around 1,000 defaulted student loan borrowers to receive notices of administrative wage garnishment, the spokesperson said. After that, the number of notified borrowers will continue to increase.