Student Loan Payment Collections Restart in 4 Days. Here's What Experts Say to Do Now

Viva Tung/CNET The US Department of Education is resuming collection efforts on defaulted student loans starting on Monday. If you're more than nine months behind on your student loan payments, that means your wages could be garnished as soon as this summer. It may sound scary, but wage garnishment to pay off a debt isn't new. Currently, some Americans have their wages garnished to pay back taxes, child support and other debt, including student loans. It just might feel "new" since there were protections in place to allow borrowers in default time to catch up since the COVID-19 pandemic. But starting in May, payments will begin to come due. "This is actually the norm," said Elaine Rubin, a student loan expert and corporate communications director for Edvisors. "If a loan is in default, then actions will be taken to then collect on the default loan." Student loans are considered in default after you've missed 270 days of payments (excluding payment pauses). It's estimated that 5 mil ... Read full article.