The Trump administration says it will begin garnishing the wages of student loan borrowers who are in default early in 2026.

The federal government is officially resuming wage garnishment for federal student loans, beginning today, January 7, 2026.

Wage garnishment will begin just as enhanced subsidies for ACA health insurance expire. People who are in default on their ...

The wage garnishment announcement marks a departure from past handling of student loan borrowers in default. Since March 2020 ...

Key Points ・Student loan rehabilitation is a process to get out of default that also removes the default from your credit, ...

Wage garnishment "is a scary concept since they can take 15% of after-tax income," Ashley Morgan, debt and bankruptcy ...

After a pandemic-era pause, repayments on defaulted student loans restarted last month. Many borrowers are running into barriers. Over the past few months, Celina Damian’s phone has been ringing off ...

Some student loan borrowers face wage garnishment. Student loan borrowers in default could have up to 15% of their wages garnished by the U.S. government starting later this summer. Nearly 2 million ...

The federal government will resume withholding money from people’s paychecks in January for the first time since the pandemic ...

WASHINGTON, DC - MAY 18: A Department of Education sign is displayed outside of their federal student aid office on May 18, 2025 in Washington, DC. Borrowers have been reporting false default alerts ...

Grays Harbor College in Aberdeen had the highest student loan default rate of any college in Washington state — with 21.4% of ...