Millions of student borrowers could face wage garnishment this summer as credit bureau TransUnion estimates 3 million borrowers may default by August, risking 15% wage deductions towards debt. Another 2 million are on track to default in September post-pandemic pause. Late or missed payments now impact credit scores as grace period ended in fall. Borrowers urged to check loan status, avoid default. Borrowers advised to act now to exit default status through rehabilitation agreements or loan consolidation. Many borrowers unaware of default risk. Long wait times to contact loan servicers due to Education Department layoffs. Borrowers advised to contact congressperson for assistance with loan issues. Department of Education warns of potential wage garnishment and tax refund withholding for defaulters. Borrowers urged to take action before wage garnishment to avoid financial hardship. Request a hearing to object to wage garnishment and provide documentation of financial situation. Exceptional circumstances like unemployment or disability may qualify for statutory discharge of loans. Department cannot garnish wages during pending hearing if requested within 30 days. Request a hearing after 30-day period, but wage garnishment will continue during the process.

Read more at Yahoo Finance: What to know if you’re at risk of having your wages garnished over student loan debt