Couverture de Student Loan Garnishment Resumes 2025: A Guide

Student Loan Garnishment Resumes 2025: A Guide

Student Loan Garnishment Resumes 2025: A Guide

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Federal student loan collections resume May 5, 2025. After a five-year pause, millions of borrowers, including nearly 10 million overdue, face the risk of wage garnishment (up to 15%), tax refund seizures, and Social Security offsets. This impacts 42.7 million Americans owing $1.6 trillion, disproportionately affecting women and those below the poverty line.

This episode explains why collections are restarting and, most importantly, explores critical options such as income-driven repayment, rehabilitation, and consolidation, available at StudentAid.gov, to avoid default and garnishment.

Feeling overwhelmed by resuming student loan collections? Tune in to learn about critical options like Income-Driven Repayment, rehabilitation, and more. Listen now to understand your rights and take action to avoid wage garnishment and financial hardship.

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