Student Loan Defaults: Biden Administration Moves to Prevent Crisis as Garnishments Restart
2025-01-15
NBC News
As federal student loan debt collection resumes after a five-year pause, the Biden administration is working to prevent a default crisis. Borrowers who have defaulted on their loans will face renewed collection activity, including wage garnishment. With millions of Americans struggling to repay their student loans, the administration's efforts aim to mitigate the impact of default and provide relief to those affected. Key strategies include income-driven repayment plans and temporary forbearance options, which can help borrowers avoid financial hardship and get back on track. Student loan forgiveness and debt consolidation are also being explored as potential solutions.