US Student Loan Debt Crisis: 40 Million Borrowers Face Wage Garnishments May 5

Published on 4.23.25

  The decision to end a temporary reprieve on student loan repayments will see borrowers facing involuntary collections starting May 5. Over 40 million borrowers owe more than $1.6 trillion in student loan debt, with only 4 out of 10 actively repaying their loans. Borrowers who default on their loans have been warned that they will face wage garnishments and withheld tax refunds if they do not set up a payment plan within two weeks. The US Department of Education is working to oversee the program, aiming to ensure responsible management and adherence to law. This decision comes as millions of students face financial strain balancing new monthly payments with rising living costs.

References

Related Posts


US Department of Education Resumes Student Loan Debt Collection Efforts Affecting 4 Million Borrowers
4.24.25
The US Department of Education's recent decision to resume collection efforts on outstanding loans has sparked debate among advocates and lawmakers. The move affects around 4 million borrowers who are...
See Full Post

Back

See Newsfeed: Education