Student loan relief during this viral pandemic has been a point of discussion for many, and it looks like the Department of Education has developed a plan to provide a bit of ease.
According to USA Today, those who have defaulted on their payments subject to wage garnishment, and/or losing their tax refund will have a bit of relief while we work to get our country back on track.
“The federal government will no longer withhold portions of borrowers’ tax returns and Social Security payments, the Education Department said Wednesday. And borrowers whose paychecks were garnished will be entitled to their full wage — although their employers must make the change to their paycheck.”
This comes almost two weeks after Trump announced interest would be paused on student loans.
In a statement, Betsy Devos, U.S. education secretary stated, “Americans counting on their tax refund or Social Security check to make ends meet during this national emergency should receive those funds, and our actions today will make sure they do.”
Private collectors have also been ordered to stop calling and sending letters.
While the government has put this in place, each company has to ensure they adjust their employees wages. Those impacted by wage garnishment have been instructed to reach out to their human resources department.
This will stay in place for at least 60 days, and will be backdated to start on March 13th.
Also according to USA Today–Over 830,000 borrowers are subjected to receive a refund of $1.8 billion. This is money that was already in the process of being seized by the government as of March 13.
In addition, borrowers who may not be that far behind but would still like assistance have the option to suspend payments for two months without penalty.
This isn’t a loan cancellation, but it is a bit of a relief at this moment.
Roomies, how do y’all feel about this?