Wage Garnishments for Defaulted Student Loan Borrowers May Start in 2026

The Trump administration plans to resume wage garnishment for approximately 1,000 student loan borrowers in default starting January 2026, with monthly notices expected to increase thereafter. Advocacy group Protect Borrowers criticized this move, arguing that it is harmful during a time of economic struggle for families. Federal student loan borrowers are considered in default after 270 days of missed payments, and must receive 30 days’ notice before garnishment. Following the COVID-19 pandemic, student loan payments resumed in October 2023 after previous extensions under the Biden administration.

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