Student loan default collection resumes
(CNN)– Collection of defaulted federal student loans resumed on Monday, May 5, after a five-year pause related to the pandemic.
The government says defaulting now can lead to garnishment of state or federal benefits, and garnishment of wages starting this Summer.
The Department of Education estimates about five-million borrowers have defaulted on student loans.
It says another four-million are at least 90 days late on payments, and are considered ‘seriously delinquent.’
if a person is worried about defaulting experts say they could look into an income-based repayment plan, payment pauses called deferment, consolidation or refinancing.
