Published January 7, 2026 2:30pm EST
Trump admin starts sending notices to student loan borrowers in default ahead of wage garnishment
Over 5M federal borrowers currently in default could see up to 15% of wages seized as pandemic-era pause ends
By Eric Revell FOXBusiness
The Trump administration is set to resume wage garnishment for federal student loan borrowers in default, with notices going out starting on Wednesday.
Student loan borrowers in default were given a reprieve from wage garnishment under a pandemic-era pause on collections, which has since elapsed and allowed the garnishment process to resume.
A Department of Education spokesperson told FOX Business that "we expect the first notices to be sent to approximately 1,000 defaulted borrowers the week of January 7, and the notices will increase in scale on a month-to-month basis."
Borrowers who are in default could see up to 15% of their after-tax wages garnished, along with tax refunds and certain federal benefits, although a minimum weekly income is protected from garnishment. Wage garnishment continues until the defaulted loan is paid in full or removed from default.
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https://www.foxbusiness.com/politics/trump-admin-starts-sending-notices-student-loan-borrowers-default-ahead-wage-garnishment
