Borrowers who are behind on federal debts may be subject to wage garnishment and could see their credit scores take a significant hit.

The department said it sent 30-day notices to 195,000 defaulted student-loan borrowers in May, warning them of benefits garnishment. This move results from the Trump administration restarting ...

1. 9 million borrowers may be heading for default. When the U.S. Department of Education paused federal student loan payments at the beginning of the COVID-19 pandemic, it paused the threat of ...

Student loan borrowers have just a few months left before they could see a significant hit to their credit scores.. While President Joe Biden's administration has issued a range of student ...

Student loan borrowers who faced default in recent months have seen their credit scores plummet an average of 63 points. The impact is even more severe on people with higher credit scores.

That's the same day it began sending defaulted student loan borrowers a 30-day notice that their income tax refund and federal benefits will be withheld, known as the Treasury Offset Program.

What to know as student loan collections resume for those in default 04:33. Americans with student loans who are behind on their payments could face having their wages garnished and other ...

Critically, many borrowers had been counting on debt relief that didn't materialize. The Biden administration's broad student loan forgiveness plan was struck down by the Supreme Court in 2023 ...

For example, compared with student loan borrowers who are not in default, they’re significantly more likely to have annual household incomes under $25,000, experience volatile wages and unstable ...