U.S. Education Department Initiates Wage Garnishment for Defaulted Student Loan Borrowers
The U.S. Department of Education has begun notifying millions of federal student loan borrowers in default that their wages will be garnished starting this week. Approximately 9 million borrowers face potential withholdings of up to 15% of their paychecks unless they take corrective action within 30 days of receiving notice.
Defaulted borrowers—those who haven't made payments in over 270 days—must either repay their full balance (including accrued interest) or request a hearing to avoid garnishment. Alternative solutions include loan consolidation or rehabilitation programs, which restore loans to good standing while stopping collection efforts.
This development marks a significant escalation in student debt enforcement as pandemic-era relief measures expire. Wage garnishments will persist until balances are satisfied or repayment arrangements are formalized, creating financial pressure on affected households.
