Reported 1 day ago
Millions of Americans struggling with student debt may face a rude awakening in 2025, as the federal government plans to resume collections on defaulted loans for the first time since the COVID-19 pandemic paused payments. Approximately 5.6 million borrowers in default may not be prepared for the government's actions, which can include wage garnishment and tax refund seizures. Many of these individuals, often lower-income and less financially savvy, may wrongly believe their debts have been forgiven or overlooked. With Biden's administration winding down, the incoming administration's approach to managing this situation remains uncertain.
Source: YAHOO