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Trump 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.
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27 Articles
27 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.
·United States
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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...
·Miami, United States
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Coverage Details
Total News Sources27
Leaning Left6Leaning Right4Center14Last UpdatedBias Distribution58% Center
Bias Distribution
- 58% of the sources are Center
58% Center
L 25%
C 58%
R 17%
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