Student Loan Repayment Deadbeats May Have Options Before Garnishment of Wages

The U.S. Department of Education is set to resume collections on defaulted federal student loans starting May 5, 2025. This includes administrative wage garnishment, where up to 15% of a borrower's disposable income can be withheld without a court order, expected to begin later this summer after a mandatory 30-day notice period. Borrowers in default-typically after 270 days of missed payments-will receive emails over the next two weeks urging them to explore options like income-driven repayment plans or loan rehabilitation to avoid garnishment. Only about 38% of borrowers are current on their payments, so millions could be affected. To dodge garnishment, borrowers can make voluntary payments, enroll in rehabilitation programs, or challenge the action if they qualify, like in cases of bankruptcy or disability.

The odd bit of all of this student loan business. The recipients of all of these funds have for the past 5 years were paying sporadically or not at all. See, a large swath of them have assumed that the previous administration led by Joe Biden would be their savior. Loan forgiveness was a known lie that biden pushed and the deadbeats with delinquent balances fell for it hook, line, and sinker.

I have no sympathy for any of them. They signed for the funds and now the piper will get paid his due.