This article outlines the key changes impacting student loan borrowers as the Biden administration transitions to the next presidency. It covers the resumption of wage garnishments for defaulted loans, delinquency timelines, and available forgiveness programs.
As the White House transitions from President Joe Biden's administration to President-elect Donald Trump's, a few key updates will impact borrowers.Here's what we know borrowers can expect in the coming year.And as of this month, servicers are able to resume collecting on defaulted loans through wage garnishments.
The on-ramp formally expired in October, but the Biden administration gave borrowers an extra few months before allowing these collection activities to resume,Ideally, you can make your student loan payment in full and on time each month. But if you do miss a payment or can't pay, you'll want to reach out to your servicer as soon as possible to see what options you have to avoid the harshest consequences. Loans are delinquent the day after a missed payment, and after 90 days your servicer will report the delinquency to the credit reporting agencies. After 270 days of nonpayment, your loan will. At that point, the entire balance comes due immediately and you could be subject to wage garnishments or the seizure of your tax refund or other federal benefits. Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weeklyBorrowers hoping for a last-minute act from Biden to forgive debt may have been disappointed to learn that wasn't happening.to allow the Secretary of Education discharge loans for long-term borrowers and those facing a variety of financial hardships. However, the Biden teamthat pre-date the Biden administration remain available to borrowers, including Public Service Loan Forgiveness and Teacher Loan Forgivenes
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