The Trump administration has proposed garnishing the wages of those in default on their student loans next year, meaning the government would take a portion of their wages to pay off the loan.
The U.S. Department of Education confirmed on Tuesday that the garnishing of wages will start on January 7 when it sends notices to roughly 1,000 borrowers who defaulted on their student loans. Such collection activity has been on hiatus since the coronavirus pandemic of 2020, per CNBC. For outstanding federal debts, the United States government has the power to seize federal tax refunds, wages, and even social security and disability benefits.
CNBC noted…
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