In the News

The Department of Education has announced a change to student loan repayments that will impact millions of borrowers.

The Department of Education has announced they are ending any leniency on student loan repayments, impacting more than five million borrowers. Borrowers have mostly been in a grace period since the start of the COVID-19 pandemic, but now the Trump administration says it will come to an end.

That means they will begin garnishing wages, or withholding a portion of a person’s earnings, for potentially millions of borrowers whose payments have been frozen

“The loan forgiveness program, it was embraced,” said Congressman Richard Neal (D-Mass.). “It was bipartisan at the time, and I think the commitment that we made should be honored.”

Beginning May 5, the department will begin involuntary collection. After a 30-day notice, they’ll start garnishing wages for borrowers in default.

The administration may also resume applications for the income-driven repayment programs, which allow borrowers to pay back their loans based on their monthly income. Also starting on May 5, the government will be withholding tax refunds for borrowers in default.