2 million student borrowers could see wages garnished to pay back loans starting in July

[mystery-ak]

     Jun 24, 2025

2 million student borrowers could see wages garnished to pay back loans starting in July

Those who get hit with wage garnishments could see up to 15 percent of their paycheck automatically deducted.

Thomas Stevenson
Jun 24, 2025 2 minute read
Around 6 million student borrowers are 90 days or more past due on their student loan payments, and around a third of them, or 2 million, could start having a portion of their wages garnished by the federal government starting in July to pay back their loans.

According to the Wall Street Journal, the number of borrowers at risk of wage garnishments is higher than the 1.2 million that was estimated by TransUnion. Wage garnishments—a legal procedure allowing a portion of wages to be withheld by the government to pay down a debt—could spell lower pay for the student borrowers who are not up to date on payments.

The wage garnishments are set to start back up this summer after the years following the Covid-19 pandemic, where student loans were not being paid off by many borrowers. Those who get hit with wage garnishments could see up to 15 percent of their paycheck automatically deducted to pay off the loans.

more
https://thepostmillennial.com/2-million-student-borrowers-could-see-wages-garnished-to-pay-back-loans-starting-in-july

[rustynail]

'could see wages garnished', like with parsley?

[DefiantMassRINO]

I never got a repreieve from paying my mortgage and taxes.

Government needs to stop picking the winners in this country.

[IsailedawayfromFR]

Why not just say 'People who owe debt will have their wages garnished'?

As a taxpayer, I loaned them money and damn sure want it repaid.

[mountaineer]

That's kind of what happens when you don't pay what you're legally obligated to pay.

[roamer_1]

'could see wages garnished', like with parsley?

Yeah... But a slice of lemon on a twist. 

[Smokin Joe]

Yeah... But a slice of lemon on a twist. 

How about raw onion. No doubt there will be a great wailing and gnashing of teeth over this. Just watch as well dressed, fashionably dressed people rant on their latest iphones in front of their Escalades.

[roamer_1]

How about raw onion. No doubt there will be a great wailing and gnashing of teeth over this. Just watch as well dressed, fashionably dressed people rant on their latest iphones in front of their Escalades.

Right. But it's all for nothing... Admin change and it all goes back the way it was... So much ado about nothing, from both directions.

[Smokin Joe]

Right. But it's all for nothing... Admin change and it all goes back the way it was... So much ado about nothing, from both directions.

Well, we'll see how much they collect.  It seems a lot of the no-loads are well paid professionals, the rest 'under'employed (or not at all), but they could do well off the more highly paid group (who will figure out some way to hide their income in the first year)..

[mountaineer]

Starbucks' payroll department will be busy processing all those wage garnishments.

[roamer_1]

Well, we'll see how much they collect.  It seems a lot of the no-loads are well paid professionals, the rest 'under'employed (or not at all), but they could do well off the more highly paid group (who will figure out some way to hide their income in the first year)..

Pretty easy yo tie it up in the courts with a class action... Injunction stops the payment... wait it out for the next admin or for congress to change hands...

meh.

[roamer_1]

Starbucks' payroll department will be busy processing all those wage garnishments.

 

[MeganC]

2 million student borrowers

MEMO: They're not students anymore. They're working and they need to pay their bills.

[libertybele]

2 million student borrowers

MEMO: They're not students anymore. They're working and they need to pay their bills.

That one made me chuckle and yes you are correct, they need to pay their bills.