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Wage garnishment to resume for defaulted US student loans starting January
Federal student loan borrowers in default will face wage garnishment from January, as the Education Department scales up collections affecting potentially millions of Americans.
The US Education Department said the Trump administration will begin garnishing wages of student loan borrowers who are in default starting in January. According to the department, notices will initially be sent to around 1,000 borrowers during the week of January 7, with the programme expanding month by month. Administrative wage garnishment allows the government to direct private employers to withhold a portion of an employee’s pay to recover unpaid federal student loans.