Bloomberg Law

The Education Department’s move to resume collections on millions of student loans after a five-year pause sets the stage to drive a new wave of bankruptcy filings and test little-used government guidance on discharging those debts, according to this article from Bloomberg Law.

Michael Hunter, Vice President of Epiq AACER

Michael Hunter, head of Epiq’s bankruptcy analytics, said garnishment will worsen financial strain, particularly for borrowers with high default rates. Currently, 4 million borrowers are in late-stage delinquency, and the number could increase to 10 million in default within the coming months, according to the Education Department.

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Carrie Trent
Epiq, Senior Director of Communications & Public Relations
Carrie.Trent@epiqglobal.com