Department of Education to Refund $1.8 Billion to Student Loan Borrowers

Published by Matt Fishman on

The Department of Education will “refund approximately $1.8 billion in offsets to more than 830,000 borrowers” of student loans.

Due to the COVID-19 national emergency, U.S. Secretary of Education Betsy DeVos announced that the Education Department will also “halt collection actions and wage garnishments (requiring employers to send a certain amount of your paycheck directly to the institution to whom you owe money)” for at least 60 days.

Additionally, the Department had previously notified that “borrowers with a federally held student loan will automatically have their interest rates set to 0% for a period of at least 60 days.”