Student Loan Borrowers in Default Could See Wages Garnished in Early 2026

Source: New York Times

“The Trump administration will begin to garnish the pay of student loan borrowers in January, the Department of Education said, stepping up a repayment enforcement effort that began this year. Beginning the week of Jan. 7, roughly 1,000 borrowers who are in default will receive notices informing them of their status, according to an email from the department. The number of notices will increase on a monthly basis. The collection activities are ‘conducted only after student and parent borrowers have been provided sufficient notice and opportunity to repay their loans,’ according to the email, which was unsigned.” (12/23/25)

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