Wage garnishment resumes for defaulted student loan borrowers

BIRMINGHAM, Ala. – Starting this month, the federal government will again begin withholding wages from borrowers who have defaulted on their federal student loans.

The U.S. Department of Education says the policy applies to borrowers who are at least nine months behind on payments, ending a pause that began during the COVID-19 pandemic.

The department confirmed to Alabama Daily News that it will send notices to approximately 1,000 borrowers whose paychecks could be affected beginning this week, with more notices to follow at an increasing scale each month…

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