UPDATE: Student loan garnishment pause extended by the feds
The Biden administration has just extended this student loan relief through at least Sept. 30, 2021.
Make sure Payroll hasn’t been garnishing employee wages to repay federal student loans in the first month of the new year. There’s been another extension for student loan relief due to the COVID-19 pandemic.
Any garnishment orders to pay back employees’ federal student loans are on hold until Jan. 31, 2021.
After being enacted in March 2020, this student loan relief was set to expire on Dec. 31, 2020 until the Department of Education extended it.
If you already withheld money …
Any workers’ wages already garnished for student loan payments in 2021? Employees will automatically receive refunds.
Note: You can’t include garnishments for private loans and other forms of debt in this extension. (They’re subject to different guidance.)
Will the feds extend this again? Stay tuned.
- Share on
Free Training & Resources
Further Reading
IRS has announced some inflation-adjusted dollar amounts you’ll need if your benefits package includes tax-favored health plans. F...
The rollercoaster ride continues as federal regulators reevaluate the current overtime rule and what it means to meet the salary level test...
IRS just released guidance on a new type of emergency savings account, created under the Secure 2.0 Act of 2022. Employers can start off...
A federal court entered a consent order against three Cowbell sports bars in Biddeford,Scarborough and Westbrook, ME, resolving a Departmen...
Beware of auto pilot when issuing expense reimbursement checks to employees. Some, or all, of the money may technically be wages instead. ...
A Little Caesars franchisee will pay $409,457 for federal wage and hour violations, the Department of Labor (DOL) recently announced. Th...
