March 26, 2020 U.S. Education Secretary stops wage garnishment for student loans for 60 days U.S. Secretary of Education Betsy DeVos announced that due to the COVID-19 national emergency, the U.S. Department of Education will cease collection actions, including wage garnishments, effective March 13, 2020 and for at least 60 days. The Department will monitor employers' compliance with the request to stop wage garnishment. Borrowers whose wages continue to be garnished after March 13, 2020 are instructed to contact their employer's human resources department. The Department has also ceased all requests to the U.S. Treasury to withhold money from defaulted borrowers' federal income tax refunds, Social Security payments, and other federal payments and private collection agencies are instructed to halt all proactive collection activities, including making phone calls to borrowers and issuing collection letters and billing statements. The Secretary directed the Department to refund approximately $1.8 billion in offsets to more than 830,000 borrowers. The refunds represent offsets that were in the process of being withheld on March 13, 2020, the date that President Donald Trump declared a national emergency and announced emergency executive actions related to COVID-19. Borrowers with defaulted student loans, a current relationship with a private collection agency, and an interest in continuing a prior payment arrangement, consolidating their loans, or beginning a loan rehabilitation arrangement with their private collection agency, should contact the Department's Default Resolution Group at +1 800 621 3115 (TTY for the deaf or hearing-impaired +1 877 825 9923). Private collection agencies are permitted to provide assistance upon the borrower's request. Visit StudentAid.gov/coronavirus for more information. ———————————————
——————————————— EY Payroll News Flash
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