US EditionWhat to know if you're at risk of having your wages garnished over student loan debt
MICHIGAN, UNITED STATES, AUG 2 – Up to 3 million borrowers face wage garnishment of up to 15% due to federal student loan defaults, with notices and options to contest garnishment available, officials said.
- The suspension of student loan repayments that was in place during the pandemic concluded in May 2025, causing millions of borrowers to face renewed debt collection efforts and the possibility of wage garnishment.
- This resumption followed a long hiatus, causing many borrowers to be unaware of their loans' default status, defined as 270 days past due, according to independent experts.
- Estimates from credit bureau TransUnion predict roughly 3 million borrowers could default by August and an additional 2 million by September, putting them at risk of garnishment of up to 15% of their wages.
- Kyra Taylor stated that when borrowers ask for a hearing within a 30-day period following receipt of a wage garnishment notification, the Department of Education must delay initiating garnishment until it reviews and rules on any objections or claims of financial hardship.
- This situation implies millions might face wage garnishment soon, but borrowers can check and act on their loan status at studentaid.gov to address defaults and avoid income loss.
67 Articles
67 Articles
Summer slump: What to do if you’re at risk of student loan wage garnishment
Summer tends to provide a respite from school. However, due to a couple of recent changes at the Education Department, thoughts of school this summer have weighed heavily not necessarily on current students, but on those who have graduated. That’s because on Friday, student loan interest relief officially ended for more than 8 million borrowers. What’s more, an increasing number of borrowers are entering default status, meaning the Department of…
Millions of student loan borrowers could face wage garnishments as early as this summer, according to estimates from the credit agency TransUnion.
Associated Press News
What to know if you're at risk of having your wages garnished over student loan debt
Millions of student borrowers could begin having their wages garnished as soon as this summer. That's according to estimates from credit bureau TransUnion.
Coverage Details
Bias Distribution
- 77% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
