Vigilant Blog

News, trends and analysis in employment law, HR, safety & workers' comp

Apr 16, 2020

Federal student loan garnishments temporarily suspended


The Department of Education (ED) has announced that it will suspend garnishments on federally held student loans dating back to March 13 and continuing through September 30, 2020. This change implements provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which provide relief for federal student loan borrowers during the COVID-19 pandemic. If you’re currently withholding a worker’s wages under an Administrative Wage Garnishment for a delinquent federal student loan, continue withholding until you receive a letter from the ED instructing you to stop. Once you receive that letter, stop withholding and follow the ED instructions. If you’ve already withheld wages under the garnishment since March 13, the ED will refund the money directly to your employee.

Tips For Employers: Note that this suspension includes only loans owned by the U.S. Department of Education. It doesn’t affect collection efforts for delinquent student loans owned by private lenders or individual schools. For more information, see the ED’s web page, Coronavirus and Forbearance Info for Students, Borrowers, and Parents.

This website presents general information in nontechnical language. This information is not legal advice. Before applying this information to a specific management decision, consult legal counsel.