Summary List Placement
Wage garnishment, or withholding someone’s wages until a debt is paid off, was prohibited for certain student-loan borrowers under the CARES Act for the duration of the pandemic.
But a Freedom of Information Act (FOIA) request revealed the Education Department continued to garnish wages of borrowers, and nearly 11,000 of them still have yet to receive refunds because the department simply cannot find them.
The Education Department responded last week to Student Defense, which works to protect students’ rights. According to the response, as of July 19, the Federal Student Aid (FSA) office had issued refunds details ⇒
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