This bill would pause the federal program that takes money from paychecks to collect defaulted student loans. The pause starts right away and stays in place until the Education Department proves it can quickly fix mistakes, stop garnishments at any time, and make employers regularly confirm accurate information. The earliest this proof can be given is one year after the law takes effect . If the Department can’t set up these protections, wage garnishment for these loans would not apply to people going forward .

The bill also adds strong consumer protections. If your pay is taken by mistake, the Department must pay you back double within 10 days, and a court can order the Department to follow this rule. Employers who keep withholding after they’re told to stop can be sued and made to repay the money, plus damages and fees. The Department would also build a database to track who is affected and report to Congress within 90 days and then each year. Wages could not be garnished for loans older than 10 years .

• Who is affected: Student loan borrowers, their employers, and the Education Department .
• What changes: Immediate pause of wage garnishment; fast refunds for mistakes; power to stop garnishments at any time; employer verification; data tracking and reports; ability to sue employers that don’t stop; double repayment for improper garnishment; no garnishment on loans over 10 years old .
• When: Pause begins on enactment; earliest restart is at least 1 year later with required certification; report due 90 days after the database is set up; refunds due within 10 days of an improper garnishment .