Wage Garnishment Looms for Millions of Student Loan Borrowers in Default

The US Department of Education plans to start garnishing the wages of student loan borrowers who are in default from early 2026. The move is expected to affect millions of borrowers who have missed payments for over 270 days. According to the department, it will send notices to approximately 1,000 borrowers in January, with more notices to follow at an increasing scale each month. Borrowers will receive a 30-day notice before their wages can be garnished. The decision comes after the Trump administration ended the pandemic-era pause on student loan payments in May. While the Biden administration extended a one-year grace period, collections have resumed, and tax refunds and other federal payments to borrowers are being withheld. Critics, such as Persis Yu, deputy executive director of the Student Borrower Protection Center, argue that the move is 'cruel, unnecessary, and irresponsible' and that the department should focus on helping borrowers find affordable payment options. The Biden administration's efforts to provide broad forgiveness to student loans were previously blocked by courts. As the situation unfolds, concerns are rising about the impact on families struggling with stagnant wages and an affordability crisis.