People who take out loans must pay them back, that’s accountability!

The Trump administration has announced plans to restart administrative wage garnishment for borrowers in default on federal student loans, beginning in early January 2026. This marks the first such collections since the COVID-19 pandemic pause in 2020.

The U.S. Department of Education confirmed that notices will start going out the week of January 7 to approximately 1,000 defaulted borrowers initially, with numbers increasing monthly. Borrowers receive at least 30 days’ notice before garnishment begins.

Under federal law, up to 15% of disposable pay can be withheld (after ensuring borrowers retain at least 30 times the federal minimum wage weekly). The government can also offset tax refunds and certain benefits.

This follows the resumption of other collections earlier in 2025 and aligns with broader changes, including limits on repayment plans and borrowing caps from recent legislation.

More than 5 million borrowers are currently in default (270+ days without payment), with potential growth amid economic pressures.

Advocacy groups have criticized the move as “cruel and unnecessary,” arguing it burdens struggling families without adequate affordable options. The department emphasizes that collections occur only after notice and opportunities to repay.

Borrowers in default should contact the Default Resolution Group promptly to explore rehabilitation or other resolutions. For details, visit StudentAid.gov.

This policy shift underscores ongoing debates over student debt enforcement and relief in the U.S.