Federal Paychecks in the Crosshairs: U.S. Resumes Aggressive Student Debt Collection Amid Economic Turmoil

Rachel Kim3 months ago3 months ago04 mins

Introduction As millions of Americans grapple with a fragile economic recovery, the U.S. Department of Education is poised to restart one of its most severe debt collection tools. Starting January 7, the federal government will resume seizing wages from borrowers who have defaulted on their student loans, a move that could siphon hundreds of dollars…

a green pay phone sitting next to a parking meter

Federal Collection Machine Revs Up: Wage Garnishments to Resume for Millions in Student Debt Default

James Anderson3 months ago3 months ago05 mins

Introduction A major shift in federal debt collection is poised to impact millions of Americans. After a prolonged pandemic-era pause, the U.S. Department of Education is preparing to restart a controversial practice: seizing wages from borrowers who have defaulted on their federal student loans. This move signals a harsh return to pre-pandemic enforcement, placing fresh…