• Rebecca Natow

Senate Democrats Express Concerns that Student Debt is Being Withheld from IRS Refunds

Inside Higher Education reports that Senate Democrats have sent a letter to the Departments of Education and Treasury inquiring about "how much in [tax] refunds have been seized from borrowers since the passage of the coronavirus relief package in March." From Inside Higher Education: "Congress, in response to rising unemployment during the coronavirus pandemic, had in the CARES Act excused most student loan borrowers from making payments through Sept. 30. The act also forbade the Education Department from collecting outstanding student debt by taking it out of refunds, garnishing wages or through other involuntary collection measures. Consumer groups, though, charge the debts are being withheld from tax refunds."

Read the original letter from Senators Wyden and Murray here.

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