For Immediate Release:
Friday, May 15, 2020
Laura Brewer (919) 716-6484
(RALEIGH) Attorney General Josh Stein today released the following statement in response to news that the U.S. Department of Education is continuing to garnish wages for student loan borrowers with defaulted federal student loans, despite a six-month moratorium on garnishment under the CARES Act.
“This pandemic has left people with student loans facing serious uncertainty about their financial futures. The CARES Act provides that workers with defaulted student loans owned by the federal government will not have their wages garnished or their benefits withheld for six months – and yet, the U.S. Department of Education is continuing to take these actions.
“I’m calling on Secretary DeVos and the Department of Education to immediately stop all collections activities and ensure that all student loan borrowers get the relief they are entitled to under the law as soon as possible. Borrowers across North Carolina are struggling financially because of this pandemic. They need this relief to shield them from further economic hardship and allow them to keep themselves and their loved ones safe and healthy during this pandemic. I will continue fighting to protect student loan borrowers – when this pandemic is over, I want every person to have the ability to continue toward building stable, successful futures.”
Attorney General Stein called on the Department of Education to halt involuntary collections activities in a March letter to Secretary DeVos. In North Carolina, Attorney General Stein suspended the collection of state debts until further notice, including debts held by the University of North Carolina System. He also shared resources to help student loan borrowers determine their options for financial relief and assistance during the COVID-19 pandemic.
More on Attorney General Stein’s work to protect North Carolinians during the COVID-19 pandemic:
- Attorney General Josh Stein Calls on Congress to Strengthen Paycheck Protection Program
- Attorney General Josh Stein Shares Resources for Student Loan Borrowers During COVID-19
- Attorney General Josh Stein Gets Temporary Restraining Order Against Alleged COVID-19 Price Gouger
- Attorney General Josh Stein Releases Statement on Rental Housing Amid COVID-19
- Attorney General Josh Stein Calls on Federal Government to Protect Seniors’ Homes During COVID-19 Pandemic
- For a full overview of this work, please visit gov/covid19