US EditionYes, the Department of Education Will Garnish Your Wages for Defaulted Student Loans. Here's What to Do
- The Department of Education announced in April 2025 it would restart collecting defaulted federal student loans on May 5, affecting millions nationwide.
- This collection restart ends a pandemic-era pause that began about five years ago, amid difficult economic conditions and rising inflation.
- Borrowers like 42-year-old Florida single mother Davina Rush, who stopped payments after becoming a full-time caregiver due to her son's accident, face wage garnishment risks.
- More than 5 million borrowers are in default, with the agency urging them to contact the Default Resolution Group, make payments, or join income-driven repayment or rehab plans.
- Experts stress that early action is crucial, warning the current administration may offer fewer relief options than before, but bankruptcy remains a potential alternative.
194 Articles
194 Articles
N.J. student loan borrowers face collections as federal pause ends. Here’s what you need to know.
The federal Education Department started referring student loans in default to collections earlier this month for the first time since the coronavirus pandemic began.
The Columbus Dispatch
Benefits could be withheld from 5.3 million defaulted student loan borrowers, feds say
By the end of summer, 5.3 million defaulted student loan borrowers may lose federal wages and benefits, the Department of Education announced.
During his first term as president of the United States, Donald Trump suspended the collection of most student loans and the Biden administration tried to remit much of the student debt until the Supreme Court ruled that his plan was unconstitutional. Now, a new change will impact millions of borrowers since May 5. In the United States, if individuals, companies, states or entities do not pay their debts to the federal government in time, they b…
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