Forbes, May 11, 2020: Dept. Of Education Discloses It Is Illegally Seizing Wages Of 54,000 Borrowers
The CARES Act was supposed to suspend all wage garnishments for borrowers in default on their government-held federal student loans. But for many student loan borrowers, that suspension has not happened — and it was supposed to be effective as of March 13, 2020, nearly eight weeks ago.
Student loan borrowers filed a lawsuit against Education Secretary Betsy DeVos earlier in May to force the Department of Education to comply with the CARES Act and stop the ongoing wage garnishments.
In a court filing today, the Department of Education disclosed that a staggering 54,000 borrowers continue to have their wages garnished despite the mandate of the CARES Act. One out of every eight student loan borrowers whose wages were being garnished prior to the effective date of the CARES Act continues to have their wages garnished today.
