Wage Garnishments Resume for Defaulted Student Loans

Federal student loan borrowers who default on their loans may face wage garnishments and other financial penalties, such as losing eligibility for certain mortgages. Borrowers are advised to address payment issues early by exploring options like deferment, forbearance, or income-driven repayment plans, which can prevent default and its consequences. Once in default, borrowers must undergo a loan rehabilitation process to access more affordable repayment options.