WASHINGTON, Jan 2, 2026, 08:47 ET
- The Trump administration plans to send about 1,000 wage garnishment notices to student-loan borrowers in default starting the week of Jan. 7.
- Federal student-loan wage garnishment can take up to 15% of a borrower’s paycheck and must be preceded by at least 30 days’ notice.
- An estimated 5.3 million federal student-loan borrowers are in default, according to a recent report.
The Trump administration plans to send about 1,000 notices to student-loan borrowers starting the week of Jan. 7, signaling a return of wage garnishment for people in default, a local U.S. television report said late Thursday.
The timing matters because the letters see their first wave landing within days, putting borrowers on the clock to respond before money starts coming out of paychecks. Federal student-loan wage garnishment is set to resume in 2026 for an estimated 5.3 million borrowers who have defaulted, The Independent reported.
Wage garnishment is when an employer withholds part of a worker’s pay to repay a debt. The Education Department will notify borrowers at least 30 days before garnishment begins, The Independent said.
In the KHQA report, Charleston, West Virginia, bankruptcy attorney Emmett Pepper said the federal process can move faster than many private wage garnishments that follow lawsuits and court timelines. “They don’t have to go through the court system,” Pepper said.
Pepper said borrowers should expect notice before deductions start and should check whether they are in default on the federal student-aid website. He also urged borrowers to make sure their contact details are current so official mail reaches them, KHQA reported.
Borrowers are considered in default when they are about nine months — or 270 days — past due on federal student-loan payments, The Independent reported. The administration’s planned notices are aimed at borrowers already that far behind, KHQA said.
The Independent said the government can take up to 15% of a borrower’s paycheck through garnishment. The deductions continue until the loan is paid off or the borrower resolves the default status, it said.
Borrowers have options to avoid or stop wage garnishment, The Independent reported. Those include paying off the loan, entering a loan rehabilitation plan, or consolidating loans.
KHQA reported that no federal student loans have been referred to collections since the onset of the COVID-19 pandemic. The Independent said the garnishment return reflects a shift back to standard federal collection practices that were paused during the pandemic.
Pepper said he worries some borrowers may not realize their status until action begins, and he urged people to open mail related to their loans, KHQA reported. He said borrowers can also appeal and work to get out of default.
The Education Data Initiative estimates West Virginia residents hold about $7.4 billion in student debt, with almost half of borrowers under 35, KHQA reported, pointing to the local stakes as the federal policy restarts.
