US EditionCould the Federal Government Garnish Your Wages to Repay Defaulted Student Loans?
The Education Department will send notices starting January 7, 2026, before instructing employers to withhold up to 15% of after-tax income from defaulted borrowers.
- During the week of Jan. 7, 2026, the U.S. Department of Education will send notices to about 1,000 borrowers as wage garnishments begin for defaulted student loan borrowers.
- Millions of student loan borrowers are in default, defined as 270 days past due, and widespread default at this threshold has driven the U.S. Department of Education to restart collection efforts.
- The department will require non-federal employers to withhold pay when instructed and must give student and parent borrowers 30 days' notice before garnishment.
- The federal government can withhold up to 15% of after-tax income, and some critics say the policy will strain Americans already struggling to make ends meet.
- The Education Department says borrowers have options to avoid garnishment, including repayment renegotiation or requesting a hearing to claim extreme financial hardship.
27 Articles
27 Articles
Student loan garnishment starts Jan. 1, here’s what that means
Effective Jan. 1, 2026, the federal government will begin garnishing wages for those in default on their student loans. More than five million Americans could be at risk of wage garnishment, with millions more in the coming months, according to Forbes. Federal law Under federal law, the Department of Education can pursue Americans who default on their payments without going through litigation. The department is required to send a 30-day notice …
Could the federal government garnish your wages to repay defaulted student loans?
The Trump administration plans to start garnishing wages from defaulted student loan borrowers beginning in January, with the Education Department sending out notices to affected individuals.
Wage garnishments on student loans to resume in the new year
CHARLESTON, W.Va. (WOWK) -- The Department of Education halted the collection of federal student loans in 2020 over pandemic concerns, but that break from breaking the bank is over next year. Borrowers will soon have to pay, one way or another. The Department of Education plans to end the five year pause on wage garnishments [...]
U.S. Dept. of Education to resume wage garnishment for defaulted student loans in January 2026
The U.S. Department of Education will resume administrative wage garnishment for borrowers in default on federal student loans in early 2026. A spokesperson for the Department stated that the process will begin the week of January 7, 2026. This action represents the first resumption of wage garni
Student loan borrowers in default could face collections
Student loan borrowers in default could face collections kcpnews2 Wed, 12/31/2025 - 05:00 Image (Utah News Connection) Click play to listen to this article. Audio file As 2025 nears its end, the new year will mean nearly 43 million Americans with student loan defaults will have to start repaying.Beginning next month, the U.S. Department of Education will send notices of administrative wage garnishment to owners of loans in default. It will af…
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