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Trump Administration to Garnish Wages for Defaulted Student Loans - Garden City Telegram

The administration will send about 1,000 notices starting Jan. 7 to borrowers in default, restarting collections paused since the pandemic began, impacting West Virginia notably.

  • The Trump administration will send approximately 1,000 notices the week of Jan. 7 to resume wage garnishments for federal student loan borrowers in default who haven't paid in nine months.
  • Unlike private collections, federal wage garnishment can proceed without court delays, and borrowers can appeal or seek alternatives to avoid default, Charleston bankruptcy attorney Emmett Pepper explained.
  • In West Virginia, where Education Data Initiative shows $7.4 billion in student debt, Pepper expressed concern for affected families.
  • Wage garnishments will vary by income, meaning some borrowers could pay more than others, and Pepper warned borrowers not to ignore notices and urged them to be proactive while hoping Congress considers changes.
  • Borrowers should update their contact information, open all mail, and check studentaid.gov to avoid surprises, as Pepper emphasized, "money will start being deducted from paychecks, but everyone will receive a notice prior to the garnishment.
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Trump administration to resume wage garnishments for student loan defaulters in January

The Trump administration has announced plans to resume of wage garnishments for those who have not made a student loan payment in nine months or more.

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The National Desk broke the news in on Thursday, January 1, 2026.
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