The U.S. Department of Education will begin issuing wage garnishment notices on January 7 for borrowers who have defaulted on their student loans, marking the first such action since the COVID-19 pandemic. Initially affecting about 1,000 borrowers, the scale of garnishments is expected to increase monthly. Under federal law, the government can garnish up to 15% of a borrower’s take-home pay, leaving them with a minimum income. Critics argue this decision exacerbates financial strain on families already facing economic challenges.
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