The Education Department says borrowers who have defaulted on federal student loans will now get a temporary reprieve from having their wages, Social Security benefits and tax refunds garnished by the federal government.
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Borrowers who have defaulted on their federal student loans will get a temporary reprieve from having their wages, Social Security benefits and tax refunds garnished by the federal government, the U.S. Education DepartmentThe department also announced it would refund about $1.8 billion to the more than 830,000 borrowers who were in the process of having money withheld.
The department said it has asked private collection agencies to stop debt collection activities, including phone calls and mailers. In a release, the agency said it would rely on employers to ensure wages are not garnished, and it advised borrowers to"contact their employers' human resources department" if there are issues.
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