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Trump administration to start seizing pay of defaulted student loan borrowers in January

https://www.cnbc.com/2025/12/23/student-loan-borrowers-wage-garnishment.htmlhttps://www.foxnews.com/politics/student-loan-defaults-trigger-paycheck-garnishment-trump-admin-ends-covid-era-pausehttps://www.npr.org/2025/12/23/nx-s1-5653312/student-loans-default-education-department
Cnbc.com and 5 more
Trump administration to start seizing pay of defaulted student loan borrowers in January Open in Cnbc.com
Highlights
  • The Education Department resumes wage garnishment for defaulted federal student loan borrowers, signaling a renewed enforcement push in early January 2025.
  • Over 5 million student-loan borrowers are in default, with collections restarting after a pandemic pause, according to department data.
  • About 1,000 defaulted borrowers will receive garnishment notices in the week of January 7, with notices expanding month by month thereafter.

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References

Student loan defaults trigger paycheck garnishment as Trump admin ends COVID-era pause

Student loan defaults trigger paycheck garnishment as Trump admin ends COVID-era pause

Student loan borrowers in default may soon see their wages garnished

Student loan borrowers in default may soon see their wages garnished

Trump admin to seize wages of up to 5 million defaulted student loan holders

Trump admin to seize wages of up to 5 million defaulted student loan holders

Student-loan borrowers in default are set to see their paychecks garnished in early January

Student-loan borrowers in default are set to see their paychecks garnished in early January

Trump admin to begin seizing wages for defaulted student loans next year

Trump admin to begin seizing wages for defaulted student loans next year

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