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flag Millions of student loan borrowers may face wage garnishment as the pandemic payment pause ends.

Millions of student loan borrowers could face wage garnishment this summer, with TransUnion predicting that around 3 million borrowers may default by August, risking up to 15% of their wages being garnished. This follows the end of the pandemic-era payment pause in May. Borrowers can check their loan status on studentaid.gov and take steps to avoid default, like entering a rehabilitation agreement or consolidating loans. They have 30 days to request a hearing to object to garnishment if they believe it would cause financial hardship.

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