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Student loan default? 5 smart ways to protect your wages
🇺🇸 United States · Economy · 7 h ago
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26.10 14:40 UTC
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A federal student loan falls into default once it is at least 270 days past due, or roughly nine months.
The Education Department is working with the Treasury Department, which is reportedly bringing on private debt collection agencies to go after borrowers’ wages, federal benefits and tax refunds in the coming weeks and months.
Those tools include garnishing up to 15% of a borrower’s wages, intercepting federal tax refunds and offsetting federal benefits such as Social Security, which private lenders usually cannot touch.
Student Loan Borrowers Fear New Bills Before Midterms
A survey from the advocacy group Student Debt Crisis Center adds a sense of how borrowers describe it.
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