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Yes, the Department of Education Will Garnish Your Wages for Defaulted Student Loans. Here's What to Do

  • The Education Department will refer defaulted federal student loans for collections starting next month.
  • This action ends a pause on collection referrals in place since March 2020 due to the pandemic.
  • Involuntary collection, including wage garnishment and tax refund interception, will begin May 5.
  • Roughly 5.3 million borrowers are currently in default on their federal student loans.
  • Borrowers in default face serious consequences but have options like loan rehabilitation to resolve their status.
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  • 66% of the sources are Center
66% Center
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The Berkshire Eagle broke the news in on Thursday, April 24, 2025.
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