US EditionTrump administration to start seizing pay of defaulted student loan borrowers in January
The Education Department will send 1,000 initial wage garnishment notices on Jan. 7 and can withhold up to 15% of disposable income from defaulted federal student loan borrowers.
- On Jan. 7, the U.S. Department of Education will send roughly 1,000 borrower notices as it resumes garnishing wages of defaulted student-loan borrowers.
- The collections restart follows a pandemic-era relief program pause that halted garnishment for years, while about 5.5 million borrowers remain in default and defaulted and delinquent borrower totals could rise.
- Under federal collection rules, the Education Department can send borrowers a 30-day notice before ordering employers to withhold up to 15% of after-tax income and seize federal tax refunds and Social Security benefits.
- Experts say timing could compound financial strain on low- and middle-income borrowers by coinciding with rising healthcare costs, while Education Secretary Linda McMahon argued garnishment pushes borrowers toward regular repayment.
- The Education Department completed an IBR update removing the partial financial hardship rule, expanding eligibility to higher-income borrowers and encouraging those previously denied IBR to reapply online while pursuing new borrowing caps and a Repayment Assistance Plan.
13 Articles
13 Articles
US to Begin Garnishing Wages for Student Debt Collection in 2026
The Trump administration will begin to seize student debt repayments from the wages of borrowers in default early next year, the US Education Department said Tuesday, a long-promised move that threatens to hit some of the most economically-vulnerable households in the country.
Wage Garnishment to Resume Over Student Loans
It's bad news for those in default on their student loans: The federal government is going to resume garnishing wages starting next month, reports the Washington Post . The first 1,000 notices will go out on Jan. 7, and the number of notices will increase monthly from there. The announcement...
Student Loan Borrowers in Default Could See Wages Garnished in Early 2026
The Trump administration will begin to garnish the pay of student loan borrowers in January, the Department of Education said, stepping up a repayment enforcement effort that began this year. Beginning the week of Jan. 7, roughly 1,000 borrowers who are in default will receive notices informing them of their status, according to an email from the department. The number of notices will increase on a monthly basis. The collection activities are “c…
Trump admin to seize wages of up to 5 million defaulted student loan holders
President Donald Trump's administration will reportedly begin seizing wages from up to 5 million student loan borrowers who are behind on their payments.On Tuesday, the U.S. Department of Education confirmed the plan to CNBC.Borrowers' paychecks have not been at risk since the COVID-19 pandemic. The...
Coverage Details
Bias Distribution
- 42% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
