Posted inFinancial Literacy

Coalition Calls for Halt to Wage Garnishment on Defaulted Student Loans

A coalition of consumer, civil rights, and education organizations is urging the federal Education Department to halt its plans to begin garnishing borrowers’ wages this month, citing research showing that a new student loan default occurred every nine seconds in 2025 and that the Trump administration’s policies are disproportionately harming Black and older borrowers.

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