COVID-19 Update: Relief for Student Loan Borrowers
On March 25, 2020, U.S. Secretary of Education Betsy DeVos announced efforts to increase flexibility regarding payments for student loan borrows. The efforts are to ensure that borrowers will not endure additional stress in making ends meet during the unprecedented and burdensome times we are in. The flexibility will be for no less than 60 days from March 13, 2020, the date that President Donald Trump declared a national emergency relating to COVID-19.
DeVos’ efforts include halting all of the requests made to the U.S. Treasury that comprise withholding money from defaulted borrowers, known as Treasury offsets. These are withholdings from remittances such as federal income tax refunds, Social Security payments, or other federal payments that are withheld at the direction of the Department or Education or another debt collection agency. Additionally, Devos directed the Department of Education to refund nearly $1.8 billion in offsets to over 830,000 borrowers.
DeVos’ efforts include any wage garnishments. The Department of Education is relying on employers to make the change to borrowers’ paychecks and halt wage garnishments and is directing employees to contact their employers’ human resources department for assistance.
Districts should be proactive in ensuring that employee wages are not continuing to be garnished during this time. Please reach out to any of the Ennis Britton attorneys with any questions. For more information, visit StudentAid.gov/coronavirus.