Student loans in default to be referred to debt collection, Education Department says

Trump chips further at Biden legacy with rollback of student loans pause

President Donald Trump is driving an even sharper contrast with his predecessor on student loans as he moves to garnish the wages of borrowers in default on their payments. The Education Department took an explicit shot at former President Joe…

The Trump administration has announced that it will begin recovering unpaid student debt. The target is five million people who are currently in bankruptcy. The article Donald Trump, a new blow of proportions! The American government begins recovering student debt, a measure that targets five million people in bankruptcy appears for the first time in Romania TV.

The U.S. Department of Education announced that, as of May 5, the “involuntary” collection of federal student loans in arrears will be reactivated, following a suspension implemented during the Covid-19 pandemic. According to a statement issued on Monday, April 21, more than five million people are currently in default of payment. A federal student loan is considered in default after 270 days without making a payment. As part of this measure, th…

Student Loan Borrowers in Default Might Have Their Wages Garnished by the Government

The Department of Education is planning to garnish the wages of people who are in default on student loans, but what does that actually mean?

The U.S. Department of Education will resume the collection of federal student loans in arrears, a measure that was slowed down in 2020 and has generated controversy. Defenders point out that the announcement comes at a time when Americans face unprecedented economic uncertainty.The Trump administration points to $1.6 trillion in student debtIn a statement, the Department pointed out that the resumption of collection protects taxpayers from assu…

Collections for over 5 million defaulted student loans to restart within weeks

(The Hill) -- The Department of Education announced Monday it will restart collections on defaulted federal student loans on May 5, including potentially garnishing wages for millions of workers. The federal agency said more than 5 million borrowers have been in default, not making monthly payments, for more than year and, in some cases, for more than seven.   Defaulted student loans have not been collected since March 2020, when they were pause…