Borrowers in default on federal student loans are getting a 60-day reprieve on collections and wage garnishments.
U.S. Secretary of Education Betsy DeVos on Wednesday announced that the move that will affect about 830,000 borrowers nationwide will last “at least 60 days from March 13, 2020,” as the U.S. battles the spread of covid-19.
During that time, the department has ordered private collection agencies to halt calls and letters to borrowers in default.
The move follows an order last week that waived interest on federal student loans for the next 60 days, as well.
“These are difficult times for many Americans, and we don’t want to do anything that will make it harder for them to make ends meet or create additional stress,” said Secretary DeVos. “Americans counting on their tax refund or Social Security check to make ends meet during this national emergency should receive those funds, and our actions today will make sure they do.”
