US EditionTrump administration to start seizing pay of defaulted student loan borrowers in January
The Trump administration will send initial wage garnishment notices to about 1,000 defaulted borrowers in January, with numbers increasing monthly as part of debt collection efforts.
- 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.
232 Articles
232 Articles
Trump Student Loan Wage Seizure Shocks Millions
The Trump administration is moving to restart wage garnishment for Americans who have defaulted on their federal student loans, marking a significant shift after years of paused collections. Beginning January 7, the U.S. Department of Education will notify roughly 1,000 borrowers that the federal government intends to withhold a portion of their wages to recover unpaid debt. The action follows the end of pandemic-era relief policies that suspend…
Trump Admin to Start Garnishing Wages of Defaulted Student Loan Borrowers
The Trump administration will resume garnishing the wages of people who are on default on their student loans starting in January. Billionaire Linda McMahon, head of the Education Department, told The Washington Post her agency has already notified some 1,000 student loan borrowers that their pay will be seized. Approximately 5 million people are in default. This comes after the Trump administration began withholding tax refunds and Social Secur…
Student Loans Update: Trump Admin Planning To Garnish Wages For Debt Defaults In 2026
For the first time in years, borrowers who have stopped paying their student loans may have their wages garnished to repay their debts. The return of wage garnishment for student borrowers comes as the Trump administration continues to enforce student debt collection more aggressively, a policy that could impact millions of Americans. Wage garnishments for student loan debt to return in January The Department of Education announced Tuesday that,…
Payday Shock: Trump Admin To Garnish Wages For Millions Of Defaulted Student Borrowers
Borrowers who have fallen significantly behind on their federal student loans could see their take-home pay shrink as soon as next month. The Trump administration is set to begin garnishing the wages of borrowers in default starting in January, the Department of Education confirmed to CNN on Tuesday. This enforcement step marks a major escalation […] Payday Shock: Trump Admin To Garnish Wages For Millions Of Defaulted Student Borrowers
Coverage Details
Bias Distribution
- 59% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
