The US Department of Education’s Office of Federal Student Aid intends to start sending administrative wage garnishment notices this summer to collect on defaulted student loans, according to an April 21 press release.
The FSA may only begin garnishment collection procedures after borrowers have been provided sufficient notice and opportunity to repay their loans, according to the press release.
The office also plans on allowing guaranty agencies to begin involuntary collections on defaulted student loans under the Federal Family Education Loan Program, according to the press release.
Roughly 10 million borrowers could be in default in the upcoming months, ...
Learn more about Bloomberg Tax or Log In to keep reading:
Learn About Bloomberg Tax
From research to software to news, find what you need to stay ahead.
Already a subscriber?
Log in to keep reading or access research tools.