Student loan borrowers in default may see wages garnished in 2026
December 23, 2025
The Trump administration says it will begin garnishing the wages of student loan borrowers who are in default early next year. The department said on Tuesday it will send notices to approximately 1,000 borrowers the week of January 7, with more notices to come at an increasing scale each month. Millions of borrowers are considered in default, meaning they are 270 days past due on their payments. The department must give borrowers 30 days notice before their wages can be garnished.