6.8 Million Student Loan Borrowers Face Imminent Wage Garnishment, Offset As Collection Efforts Resume

Contributing sentiments towards policy:

60% : The Department of Education appeared to concur, with one official on Monday saying there is a record number of federal student loan borrowers at risk of delinquency and default in the current environment.
57% : "Dysfunction in the federal government continues to keep federal student loan borrowers in a state of perpetual chaos," said TICAS in its blog post.
54% : And as millions of additional borrowers are expected to fall behind on student loan payments in the coming months, with many of them potentially going into default after 270 days of delinquency, the situation may become dire.
53% : The announcement comes as student loan borrowers are facing unprecedented pressures.
53% : " According to the official, the department will restart the Treasury Offset program - which allows the government to intercept or offset federal tax refunds, Social Security payments, and other federal income streams - by May 5th.
52% : "In addition to ongoing credit score damage and hefty collection fees, the federal government also wields vast extra-judicial powers to collect student debt, including garnishing wages and seizing Social Security payments and tax refunds that are targeted to households with very low incomes, including the Child Tax Credit and the Earned Income Tax Credit," said TICAS.
51% : These efforts will include involuntary collections activities that allow the government to intercept tax refunds, offset Social Security payments, and garnish wages from employment, all without a court order.
51% : " For much of the last six months, millions of student loan borrowers have been unable to access income-driven repayment plans.
48% : And Biden-era relief programs designed to ease the transition back to normal repayment subsequently protected borrowers from the worst impacts of student loan delinquency and default.

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