ED Reports Slow Progress on Income-Driven Repayment Applications and Default Collections Begin

Reported 1 day ago

In April, the U.S. Department of Education (ED) processed only 4% of outstanding income-driven repayment applications, with nearly 2 million still pending. Borrowers are advised to continue making regular loan payments while waiting for their applications to be processed, as delays are expected. Additionally, collections notices have begun for nearly 200,000 federal student loan borrowers in default, reigniting wage garnishment, tax withholding, and Social Security seizures that had been paused for five years.

Source: YAHOO

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