. However, somehow, your wages were improperly garnished to pay your student loans. Here’s what happened.provided by Federal Student Aid, the Student Borrower Protection Center alleges that guarantee agencies that manage the Federal Family Education Loan Program — which are privately-owned student loans issued prior to 2010 by banks and financial institutions and were guaranteed by the federal government — didcomply with orders from the U.S.
Department of Education to stop garnishing wages from student loan borrowers whoOne guarantee agency, Ascendium, continued to collect $3.9 million in wages from defaulted FFELP student loan borrowers in June 2021;$12.9 million in cumulative wages garnished since October 2020, but as of June 2021 still had not refunded these improper wage garnishments, despite orders from the Education Department to do so; $24.
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Nearly 11,000 Borrowers Still Waiting To Be Refunded For Wages Garnished By Department Of EducationNearly 11,000 student loan borrowers are still waiting to get their money back after the Department of Education illegally garnished their wages during the pandemic. A federal moratorium put in place in March 2020 halted wage garnishment for borrowers with federal student loans in default. But its rollout was sluggish, and now, thousands of borrowers […]
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