The U.S. Education Department confirmed to NPR that it will resume garnishing wages from student loan borrowers in default in early 2026, marking the end of a years-long pause in wage garnishment due to the pandemic. The move comes after a period of inactivity, during which the federal government had suspended its efforts to collect on defaulted loans through wage garnishment. According to a department spokesperson, the first notices to be sent to approximately 1,000 defaulted borrowers are expected to be sent the week of January 7. Wage garnishment notices are expected to increase on a monthly basis throughout the year.

Borrowers who are in default on their federal student loans may face wage garnishment, a process in which the federal government orders an employer to withhold up to 15% of a borrower's pay. This can occur when a borrower has not made loan payments in more than 270 days. Before wage garnishment begins, borrowers should receive a 30-day notice from the Education Department. The spokesperson emphasized that wage garnishment is a last resort and is only used after other collection efforts have been exhausted.

The Education Department's decision to resume wage garnishment is a significant development in the ongoing effort to manage the nation's student loan debt. According to the department, there are currently over 8 million borrowers in default on their federal student loans. The resumption of wage garnishment is expected to have a significant impact on these borrowers, many of whom are struggling to make ends meet.

Betsy Mayotte, the president and founder of The Institute of Student Loan Advisors, expressed concerns about the impact of wage garnishment on borrowers. "Wage garnishment can be a devastating blow to borrowers who are already struggling to make ends meet," Mayotte said. "It's essential that the Education Department provides clear guidance and support to borrowers who are facing wage garnishment, and that they have access to resources and assistance to help them get back on track with their loan payments."

The Education Department's decision to resume wage garnishment is also a reflection of the ongoing debate about the role of the federal government in managing student loan debt. Some argue that the government should take a more active role in collecting on defaulted loans, while others argue that the government should provide more support and assistance to borrowers who are struggling to make ends meet.

The current status of the Education Department's plans to resume wage garnishment is that the first notices to be sent to defaulted borrowers are expected to be sent the week of January 7. The department will continue to send notices on a monthly basis throughout the year, with the goal of collecting on defaulted loans through wage garnishment. Borrowers who are facing wage garnishment are advised to seek assistance from the Education Department or a qualified student loan advisor to help them navigate the process and avoid further financial hardship.