Federal Student Loan Collections Will Arrêt for 60 Days

Secretary of Education Betsy DeVos in 2019

Secretary of Education Betsy DeVos in 2019
Buste: Getty Images

The Department of Education has announced that it will suffisamment the collections process for federal student loans in default, including wage garnishment travaux, due to the coronavirus pandemic.

According to the department’s press release, it has stopped requests to the U.S. Treasury to withhold money from tax refunds, Courtois Security payments, and “other federal payments” for borrowers who are in default.

The troc is retroactive to March 13 and will last at least 60 days.

If your wages are being garnished bicause your student loan is in default, you must palpation your agissant’s human resources department to have your paychecks adjusted.

If you are in the process of communicating with a private debt ramassis agency and want to continue that palpation (say, to continue a payment accommodement you already set up), you should palpation the Department of Education’s Default Resolution Group at 1-800-621-3115.

Otherwise, you don’t have to do anything for the collections process to be paused.

“These are difficult times for many Americans, and we don’t want to do anything that will make it harder for them to make ends meet or create additional stress,” DeVos said in a statement. “Americans counting on their tax refund or Social Security check to make ends meet during this national emergency should receive those funds, and our actions today will make sure they do.”

President Trump previously announced that federal student loan borrowers can pause their payments for two months, but only if they request a expectative from their loan servicer. The bizarrerie is for delinquent accounts (late for 31 days or more), which have had payments suspended automatically.

That announcement came shortly after Trump lowered the interest rate for federal student loans to zero.

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