Under the Trump administration, the Department of Education will resume wage garnishment for federal student loan borrowers in default beginning in early January, restarting a major enforcement tool that has largely been dormant since the pandemic-era collections pause began in March 2020, The Washington Post reported.
Starting the week of Jan. 7, the department plans to notify about 1,000 borrowers that they are in default, with the number of notices expected to increase each month, according to an internal email reviewed by the Post.
Borrowers typically have a window to respond before withholding starts; the Post reported that recipients will have 30 days after notice to contest the action, repay, or set up an arrangement to avoid garnishment.
Federal law allows the government to withhold up to 15% of a borrower’s disposable pay through administrative wage garnishment until the debt is paid or the borrower resolves the default.
The enforcement restart comes as delinquency and default figures remain elevated following the end of pandemic protections and the subsequent "on-ramp" period.
As of June 30, 2025, Education Department-held loans for roughly 5.3 million borrowers, about $117 billion, were in default, according to a Congressional Research Service report.
The outlet noted that missed payments have also surged since a 12-month repayment "grace" period ended on Sept. 30, 2025.
The move also lands amid major changes to repayment options. Earlier this month, the Education Department announced a proposed settlement that would end the Biden-era SAVE income-driven repayment plan and transition enrolled borrowers to other repayment programs, pending court approval.
Education officials have framed the renewed collections push as restoring accountability and protecting taxpayers, while borrower advocates warn that the combination of plan upheaval and enforcement could deepen financial strain for households already behind.
James Morley III ✉
James Morley III is a writer with more than two decades of experience in entertainment, travel, technology, and science and nature.
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