DEVELOPING: Wages to be Garnished: Student Loan Borrowers in Default Face Imminent Repayment Action

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Cyber_Cat

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DEVELOPING: Wages to be Garnished: Student Loan Borrowers in Default Face Imminent Repayment Action

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Breaking News: Student Loan Borrowers in Default Face Wage Garnishment

The US Education Department has confirmed that it will resume garnishing wages from student loan borrowers in default starting early 2026. Approximately 1,000 defaulted borrowers will receive notices the week of January 7, with the number of notices increasing monthly throughout the year.

Borrowers in default, defined as those who have not made payments in over 270 days, can expect to see up to 15% of their pay withheld by their employer. The Education Department will send a 30-day notice before wage garnishment begins.

This move comes after a years-long pause in wage garnishment due to the pandemic. Federal student loans have been subject to changes, with the Education Department resuming collection efforts on defaulted loans.

The Education Department has confirmed the plan, and borrowers in default should expect to receive notices in the coming weeks. This is a developing story, and we will provide updates as more information becomes available.

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