Ed Dept to Refer Defaults for Debt Collection

The Department of Education will begin on Monday referring those in default on their student loans for debt collection, Axios reported.

According to the publication, 5.3 million are in default. Those in default could have their wages garnished if they don't resume payments.

The involuntary collections will begin via the Treasury Offset Program. But borrowers will be given a 30-day notice before collections take place.

Roughly 42.7 million people owe $1.6 trillion in student loans. Only 38% of borrowers are current on their payments.

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