Federal student loan borrowers face wage garnishment and Social Security cuts if they default post-pandemic pause.

Federal student loan borrowers who have fallen behind on payments since the pandemic-era pause ended in September 2023 will face financial consequences, including wage garnishment and Social Security benefit reductions. Borrowers can avoid default by seeking deferments, forbearances, or income-driven repayment plans. However, once in default, borrowers must complete a rehabilitation process before accessing these options.

December 01, 2024
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