What’s Happening Right Now with Student Loans Make sure you share this post with those that have student loans The U.S. Department of Education has started sending notices to nearly 200,000 defaulted borrowers, warning them that their federal benefits—like Social Security—will be garnished in just 30 days. And that’s not all. The Treasury Department is preparing to notify 5.3 million borrowers this summer that their wages will also be garnished. This is a major pivot from the pause that began in March 2020. Back then, collections were paused and relief programs were put in place. But now, the government is charging forward, and you must not sit still. An Expert Warning You Should Take Seriously According to Mark Kantrowitz, one of the nation’s top higher education experts and a great friend : “Borrowers are usually given 65 days’ notice before the garnishment of their federal benefits. The fact that the Department is only giving 30 days is a sharp deviation from past practice.” He also warns: “Garnishing Social Security and disability checks used to be a last resort—typically a full year after wage garnishment had already failed.” In other words: They’re skipping steps. This is more aggressive than we’ve seen before, and it could catch millions of you off guard. If You’re in Default: What You Must Do Now Do not ignore this. Open every email or letter from your loan servicer. Hiding from it will only make it worse. Contact the Default Resolution Group: Phone: 1-800-621-3115 TTY: 1-877-825-9923 Online Help: https://myeddebt.ed.gov The government’s Default Resolution Group can help you: Consolidate your loans into a new Direct Consolidation Loan Rehabilitate defaulted federal student loans by making 9 out of 10 consecutive, on-time, voluntary, reasonable and affordable monthly payments. This will remove the default from your credit history. You can then switch into an income-driven repayment plan, which bases the loan payment on a percentage of your discretionary income, as opposed to the amount you owe. If you’re living on Social Security, act immediately. You may be able to: Request retroactive forbearance to wipe out missed payments Suze’s Bottom Line I know many of you feel overwhelmed or ashamed to even look at your loan balance. But hiding won’t protect you. Action will. If you're in default and do nothing, you could soon be left with: Smaller paychecks Seized tax refunds Slashed Social Security checks But if you act now, you still have options. You are not alone. You are not your debt. You are your courage—and you are your plan. Let this be the moment you take your power back KEY NUMBERS + CONTACTS FOR STUDENT LOAN HELP 1. Federal Student Aid Info Center (FSAIC) Phone: 1-800-433-3243 Use for: General help, repayment plan questions, application assistance If hold times are long, try using the chat function on the website. Website: https://studentaid.gov 2. Default Resolution Group Phone: 1-800-621-3115 (TTY: 1-877-825-9923) Use for: Getting out of default, loan rehabilitation, wage garnishment help 3. Loan Servicer (Your Assigned Provider) Find yours by logging into: https://studentaid.gov Use for: Payment plans, updating income, requesting deferment/forbearance Examples: * MOHELA: 1-888-866-4352 * Nelnet: 1-888-486-4722 * Aidvantage: 1-800-722-1300 * Edfinancial: 1-855-337-6884 4. Total and Permanent Disability Discharge (TPD) Phone: 1-888-303-7818 Website: https://disabilitydischarge.com Use for: Discharging loans if permanently disabled (VA, SSA, or doctor-certified) 5. Ombudsman Group (Last Resort Help) Phone: 1-877-557-2575 Use for: Disputes, unresolved issues with servicers, legal complications Website: https://studentaid.gov/feedback-ombudsman 6. National Foundation for Credit Counseling (NFCC) Phone: 1-800-388-2227 Use for: Budget help, credit counseling, repayment advice 7. Bankruptcy Help Use for: Must contact a local bankruptcy attorney who understands student loans Find help: https://www.nacba.org https://asksuze.disciplemedia.com/posts/3029?sh=qYs7sK1q
Posted by Suze at 2025-05-07 12:41:59 UTC