The outcome highlights the challenges borrowers face accessing the advantages and defenses going to them in a federal student-loan system which includes extraordinary power at its disposal to gather. Whenever a debtor defaults on the federal education loan, the federal government can garnish their Social protection advantages, wages and income tax refunds to have its cash back.
Borrowers have the right to mitigate or avoid these consequences if you take particular actions — including, if they’re disabled, filing for an impairment release.
But debtor advocates have actually reported for many years that deficiencies in information through the federal government additionally the organizations and nonprofit organizations it employs to handle the student-loan system have actually meant struggling borrowers face challenges accessing the lifelines to which they’re entitled. (more…)