Payroll News

Garnishments for Student Loans on Hold Until Mid-May

March 25, 2020, 4:58 PM

Wage garnishments for student-loan borrowers are to stop until at least May 12 because of the coronavirus crisis, the Education Department said March 25.

Collections and wage garnishments were temporarily put on hold so the department can provide assistance to borrowers, the department said in a news release. The temporary stop is to last at least 60 days starting from March 13, when President Donald Trump declared a national emergency related to the virus. the department said.

Employers’ compliance with the order is to be monitored by the Education Department, which relies on employers to make the change to borrowers’ paychecks.

Employees whose wages continue to be garnished for student loans after March 13 should contact their employers’ human resources representatives, the department said.

To contact the reporter on this story: Christine Pulfrey in Washington at cpulfrey@bloombergtax.com

To contact the editors responsible for this story: Michael Trimarchi at mtrimarchi@bloombergtax.com; Michael Trimarchi at mtrimarchi@bloombergtax.com

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