New student loans updates

On 3/30/21, the Department of Education announced an expansion of the pause to student loan interest and collection of all defaulted loans in the Federal Family Education Loan (FFEL) Program

What this means

The DOE has directed guaranty agencies to cease all collection activities, return collected funds to the borrower and set the loan interest to 0%, retroactive to 3/13/2020 through 9/30/2021.

What we’re doing now

• Our teams have already begun to complete these liens to prevent additional withholdings
• Any funds received by agencies on or after 03/13/2020 will be returned direct to the borrower
• Any funds NOT returned directly to the employee, by the guaranty agencies, and returned to ADP will be refunded through payroll.
• The DOE/Administering agencies will besending individual orders to Employers to reinstate the withholding
• Employees are advised to contact their lender directly for any questions or immediate needs.

What’s next

We will continue to monitor this matter and send you additional communication should any new actions or updates become available.

This information and other updates are available at ADP Wage Garnishments COVID-19 Updates.

Note: Some details provided on this site are not applicable to all ADP wage garnishment products.

We hope you find this information helpful. Please contact your Service Team if you have additional questions.