Nearly two million student loan borrowers in the United States are at risk of having their wages garnished starting this summer, according to estimates from TransUnion and reports by The Wall Street Journal. This wage garnishment is a consequence of borrowers failing to repay their student loans, with the pause on repayments due to the COVID-19 pandemic having ended. Additionally, approximately six million borrowers are already more than 90 days delinquent on their loans, and the government may withhold up to 15% of their paychecks to recover the debt. The resumption of wage garnishments marks a significant development in the student loan repayment landscape after the pandemic-related relief measures were lifted.
The Education Department announced Wednesday that interest accrual for student loan borrowers on the Saving on Valuable Education (SAVE) plan will restart Aug. 1. https://t.co/DQc95Is96M
Millions of Americans are about to see their student loans accrue interest again. Here’s what to know. https://t.co/pXTSVaV52u
IN NATIONAL NEWS — Education Department restarts interest accrual for borrowers on SAVE plan https://t.co/YzwPHFVVLr