May 10, 2002

Bush Administration Seeks More Money From Student-Loan Defaulters

By STEPHEN BURD

The Bush administration is considering a plan to allow the U.S. Education Department to seize a greater share of the wages of borrowers who have defaulted on their student loans.

Consumer advocates complain that the proposal, if enforced, could harm borrowers who are too poor to repay their loans. They also question the legality of the plan.

The Education Department is already authorized, under the Higher Education Act, to garnishee up to 10 percent of a student-loan defaulter's

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