It's a new month and the stress of back-to-school is here! There is even more stress for former students who were hoping that this day would not come.

As of now, the interest will starting accruing again on Federal Student Loans and could spell a major issue for borrowers here in New York State.

This could mean, if loans are in default long enough, the government could start to garnish (remove) some of your wages to pay back the money you owe.

The Biden administration tried to cancel much of these loans for thousands of borrowers but were not successful. The first payments in three years will be due starting in October and if you default, they can wake garnish! But, according to reports, the government will hold them harmless for up to a year before they are sent to collections.

What can you do? There are multiple organizations that are set up to help borrowers. There is a a group and movement that has gotten some strength that is trying to force the Federal Government to cancel the outstanding debt. Some borrowers claim that they used the money that would have been for loan payments to open a business or assist their families.

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