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That is essentially a collections agency run by the Treasury.
Roughly 5 million borrowers will be impacted, she explained.
The DOE has said that later this summer it will start sending notices regarding wage garnishment, Tayne said.
Heresmore information about wage garnishment.
What Is Wage Garnishment?
The good news is consolidation and income-driven repayment (IDR) applications are available once again, Roitburg said.
Borrowers should still be able to enroll in these plans but will likely experience processing delays, he explained.
you might also try paying off your loan in full, but this is unrealistic for most people.
Consolidation combines all of your loans into a single balance, so you pay more interest over time.
There are two ways to consolidate your defaulted loans.
What About Bankruptcy?
Prior to the guidance, it was nearly impossible to discharge student loans in bankruptcy, Roitburg said.
With the guidance, debtors are successfully achieving discharges in approximately 85% of cases.
Borrowers will no longer be able to simply ignore student debt.
Borrowers will need to take some action, Roitburg said.
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