The Department of Education will resume wage garnishment for delinquent student borrowers starting in 2026
The department will begin notifying about 1,000 delinquent borrowers the week of Jan. 7 that it plans to withhold part of their wages to recoup overdue debts.
Linda McMahon at the White House
Donald Trump's administration will begin garnishing the wages of people in default on their student loans early next year. This is the first wave of new wage garnishments since the pandemic.
The information was confirmed by the Department of Education to the Washington Post (WaPo). Similarly, it was learned that beginning the week of Jan. 7, it would begin notifying about 1,000 delinquent borrowers of its plans to withhold a portion of their wages to pay off their overdue debts.
"After that, the department said, notices will be sent to larger numbers of borrowers each month," WaPo detailed.
According to data available from the Department of Education, as of June 30 there were approximately 5.3 million borrowers who had gone at least 360 days without making payments on their federal student loans.
A large portion of them were already in default before the federal government suspended collection of delinquent loans in the wake of the pandemic, more than five years ago.
The garnishment process
By law, before the garnishment goes into effect, the Department of Education must give the borrower at least 30 days' notice. During that period, the individual has several options to avoid having his or her wages garnished: he or she may request a hearing to contest the order, pay the outstanding debt, or negotiate a repayment agreement.
If garnishment takes effect, the department may withhold up to 15% of the borrower's disposable income, i.e., after-tax wages. This garnishment continues automatically until the delinquent loans are paid in full or until the borrower takes steps that will enable him or her to exit the default status.
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