💨 Abstract

Starting May 5, the U.S. Education Department will begin collecting on delinquent federal student loans, potentially leading to wage garnishment, tax refund interception, and Social Security check seizure. Borrowers with defaulted loans will receive communication about their options, which include loan rehabilitation, monthly payments, or income-driven repayment plans. Loan rehabilitation involves nine consecutive on-time payments to exit default but can only be done once.

Courtesy: wtop.com

Summarized by Einstein Beta 🤖