U.S. to Garnish Wages of Millions Over Student Debt

The U.S. Department of Education has started a major action against defaulted student loans. This week, it began sending official notices warning borrowers that their wages may be garnished. The move could affect millions of people who have fallen behind on federal student loan payments. Wage garnishment is a process where money is taken directly from a person's paycheck to repay a debt. Financial expert Jill Schlesinger advises borrowers who get a notice not to ignore it. She says the first step is to contact the loan servicer listed on the document. Borrowers can often stop garnishment by setting up a new repayment plan. This enforcement comes as monthly loan payments have resumed for all borrowers after a multi-year pandemic pause.