The garnishments will happen in waves, with the first borrowers seeing the pay deductions in early June. Monday, the Education Department started sending 30-day notices to around 195,000 defaulted borrowers to notify them that they will be subject to the Treasury Offset Program, which collects past-due debts owed to state and federal agencies. Under this program, Treasury can withhold money including tax refunds, wages, Social Security payments, and disability benefits to pay delinquent debt.
Later this summer, "all 5.3 million defaulted borrowers will receive a notice from Treasury that their earnings will be subject to administrative wage garnishment," the department says in its first timeline of the enforcement action.
Donald Trump made a surprise announcement doubling tariffs on imported steel and aluminum from 25% to...
