Daily Kos - The Department of Education announced Monday that it will resume collections on defaulted student loans starting May 5—just as the stock market hits historic lows and inflation continues to climb.
On a call with reporters, officials confirmed that borrowers who don’t pay up could face wage garnishment by summer. Others could be hounded by debt collectors or shoved into income-based repayment plans. The Treasury Department will administer the process through its offset program, and borrowers will be notified within the next two weeks....
This marks the official end of a pandemic-era pause
on collections that began in March 2020. No defaulted federal loans
have been referred to collections since, but that ends now—arguably at
the worst possible moment.
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