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Tag Archives: US Department of Education

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

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

WASHINGTON (AP) — The Education Department will begin collection next month on student loans that are in default, including the garnishing of wages for potentially millions of borrowers, officials said Monday. Currently, roughly 5.3 million borrowers are in default on their federal student loans. Beginning May 5, the department will begin involuntary collection through the Treasury Department’s offset program, which withholds payments from the government, including tax refunds, federal salaries and other benefits, from people with past-due debts to the government. After a 30-day notice, the department will also begin garnishing wages for borrowers in default.… Continue Reading

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