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The Department of Education will resume collections on defaulted federal student loans on May 5, potentially garnishing wages for millions of workers who have not made payments for over a year.
Education Secretary Linda McMahon stated, "American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies," emphasizing the need for borrowers to return to repayment for their financial health and the nation's economic outlook.
The Treasury Offset Program allows the government to withhold federal payments and potentially garnish wages of defaulted borrowers after a 30-day notice.
Defaulted borrowers will be contacted before the May deadline and encouraged to set up an income-driven repayment plan or sign up for loan rehabilitation.
President Trump has criticized President Biden for his leniency on student loans, signaling an end to potential loan forgiveness and emphasizing the importance of borrowers being up to date on their loans.
Source: The Hill
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