Education Department targets employers over wage garnishment
Associated PressThe U.S. Education Department says it’s ramping up efforts to contact more than 37,000 employers who have improperly continued to garnish wages from workers who have fallen behind on their student loans. Congress ordered a temporary pause on involuntary collections in March, but the Education Department was sued weeks later in a class action case alleging that the agency failed to notify employers of the change. One of the groups behind the suit, Student Defense, said Monday’s court filing proves that thousands of workers are still being harmed by the department six weeks after Congress’ rescue package took effect. Congress ordered the Education Department to pause wage garnishments amid other loan collections as a way to relieve financial pressure on student loan borrowers during the coronavirus pandemic.