Student Loan Borrowers, You Have Until Summer to Prevent Your Wages From Being Garnished

If your federal student loans are in default, the Department of Education could begin garnishing your wages soon. Getty Images/Viva Tung/CNET If you're behind on your student loan payments, the Department of Education is about to use your paycheck to get your attention. The Department of Education announced it had resumed involuntary collections on student loans on May 5. 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. "Later this summer, all 5.3 million defaulted borrowers will receive a notice from Treasury that their earnings will be subject to administrative wage garnishment," the statement said. Federal student loans enter default after they are 270 days past due. Loan servicers can first report loans that are 90 days past due as delinquent, which can be reported to the credit bureaus and damage your credit score. After the loan enters ... Read full article.