The U.S. Department of Education is set to restart collection efforts on defaulted student loans on Monday—putting millions of borrowers at risk of wage garnishment and other consequences.
The federal government has extraordinary collection powers on its student loans and it can seize borrowers’ tax refunds, paychecks and Social Security retirement and disability benefits.
More than 42 million Americans hold student loans, and collectively, outstanding federal education debt exceeds $1.6 trillion. More than 5 million borrowers are currently in default, and that total could swell to roughly 10 million borrowers within a few months, according to the Trump administration.
Read more at CNBC.
