FSA to Stop Wage Garnishment, Collections Actions for Student Loan Borrowers
The Association of Mature American Citizens (AMAC) along with other consumer advocacy groups urged Education Secretary Betsy Devos to suspend the collection of defaulted federal student loans during the pandemic. In response, Education Department officials have ordered the private companies it hires to collect defaulted loans to immediately stop calling borrowers, sending collection notices, or taking steps to seize portions of their paychecks. Also, the Education Department plans to stop referring defaulted student loan accounts to the Treasury Department, which is responsible for executing the seizure of borrowers’ tax refunds and other federal benefits like Social Security payments.
This is one of a recent series of recommendations AMAC has advocated for on behalf of older Americans as part of its on-going role as the voice of American seniors. For a more complete list of these recent recommendations, click here ….
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