Trump administration says it will begin garnishing wages of student loan borrowers in default
pbs.org/newshour/education/trump-administration-says-it-will-begin-garnishing-wages-of-student-loan-borrowers-in-default
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Wage Garnishment to Target Defaulted Student LoansStarting January 2026, about 1,000 borrowers will get notices as wage garnishments begin for loans 270+ days past due.
- The Department of Education will initiate wage garnishments for student loan borrowers in default early next year.
- Notices will first be sent to roughly 1,000 borrowers during the week of January 7, increasing monthly thereafter.
- Borrowers will receive a 30-day notice period prior to any wage garnishment actions.
- Advocates criticize the approach for lacking sufficient support to help borrowers find affordable repayment plans.
At a time when families across the country are struggling with stagnant wages and an affordability crisis, this administration's decision to garnish wages from defaulted student loan borrowers is cruel, unnecessary, and irresponsible.— Persis Yu, deputy executive director for the Student Borrower Protection Center, criticized the decision to begin garnishing wages.
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Key FactsNew Debt Collection for US Student Loans
Apr 21, 2025 · Reading time: ~45 sec.
Summary created with AI assistance · Source: apnews.com
Summary created with AI assistance · Source: apnews.com
- The Education Department will start collecting on defaulted student loans in May, including wage garnishments for millions of borrowers.
- Currently, about 5.3 million borrowers are in default, marking an end to the leniency established during the COVID-19 pandemic.
- Critics have called the decision cruel and unnecessary, warning it could worsen economic struggles for many families.
- Borrowers can avoid wage garnishments by applying for loan rehabilitation, which allows them to recover from default after nine consecutive timely payments.
American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies.— Education Secretary Linda McMahon made this statement regarding the return to debt collection practices for student loans.
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