We hope you are doing well. ADP TotalSource is always working to keep you informed of important regularly matters and we want to be sure you’re aware that in an Aug. 24, 2022 press release, the Department Of Education (DOE) announced a final suspension of wage garnishments for student loan debts through Dec. 31, 2022. The extension is aimed at phasing out pandemic-related relief responsibly, so people do not suffer unnecessary financial harm.
What you need to know
· Based on the DOE’s announcement, we will not resume withholdings for federally collected student loan garnishment orders before Dec. 31, 2022.
· Student loan borrowers will have a greater chance to bring their repayment delinquencies and defaults into good standing with the ‘Fresh Start’ initiative. Borrowers of most federally held student loans will likely be contacted by their loan holder to make payments directly to their lender. This will likely delay resumption of existing garnishment orders when the suspension ends on Dec. 31, 2022.
· We will continue to return payments addressed to the DOE & guaranty agencies until further notice.
What we’re doing now
· Our teams have marked these liens inactive.
· Any funds the DOE received on or after March 13, 2020, will be returned direct from the DOE to the borrower.
· The DOE will be sending individual orders to Employers to reinstate the withholding upon resumption.
· Employees are advised to contact their lender directly for any questions or immediate needs.
If employees have questions, they should contact their loan servicing agency through the Federal Student Aid website.
For any additional questions, please submit a case to ADP TotalSource® Wage Garnishment Unit via the Service Portal.
What’s next
We will keep monitoring this matter and send you additional information should any new actions or updates become available.