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First, New York temporarily suspended the collection of certain debts owed to the state during the pendency of the COVID-19 pandemic. Now, it appears that the Department of Education (ED) has done the same.
Politico reported yesterday that ED will stop "seizing the wages, tax refunds and Social Security benefits of people who are in default on their federal student loans." ED has also instructed its private debt collectors to stop pursuing borrowers for the time being, retroactive to March 13. The restrictions will permit collectors to continue receiving inbound calls from borrowers.
This decision comes on the heels of Senate Democrats urging ED Secretary Betsy DeVos to provide relief to student loan borrowers during the pandemic.