What did you wanna be when you grew up? 🙇 A marine biologist? Perhaps a brain surgeon? Did anyone dream of sitting in a lukewarm cubicle for 9 hours? 🥴💭 Hashtag livin’ the dream.
If you’re behind on your student loan payments, Uncle Sam might be coming for your cash…just not right now. A new pause could give defaulted borrowers more time to make moves.
Here’s Five Fast Facts on the Department of Education’s plans:
- ⏸️ Pause Button - In a recent announcement, the Department of Education backpedaled on their plans to garnish wages of those with defaulted student loans. Through the Treasury Offset Program, the government could also seize borrowers’ federal tax refunds.
- 💰 Starts & Stops - Back in May, the Department of Education said they’d soon begin collecting wages from defaulted borrowers. Anyone who didn’t make payments for 270 days or more would be at risk. Before that announcement, collections were put on pause for five years.
- 💌 You’ve Got Mail - Today, more than five million student loan borrowers are in default. Those at risk of wage garnishment and other seizures are sent a notice via snail mail, which a lot of folks miss.
- 📋 Naughty List - Didn’t get anything in the mail, but wondering if you’re on the list? Call the Treasury Offset Program at 1-800-304-3107. For all the deets, head to their official website.
- 🏃 Makin’ Moves - If you’re in default, look into loan rehabilitation. Through it, you could get on a payment plan and remove the default status from your records. You could also consolidate your loan, which is a quicker process, but the default status stays on your credit report.
🔥Bottom line: Your wages and tax refunds might be safe for now, but don’t let this pause stop you from taking action. Make sure you know your options! Looking for a new job to help you pay off those student loans quicker? Check out this white collar job guide, fresh for 2026!
Do you have student loans in default?
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