The Trump administration will start garnishing wages of federal student loan borrowers in default beginning January 7, 2026.

The Trump administration will begin wage garnishment for federal student loan borrowers in default starting January 7, 2026, initially notifying about 1,000 borrowers, with more to follow. Borrowers must be 270 days past due and receive 30 days’ notice before garnishment begins, allowing up to 15% of take-home pay to be withheld. This marks a reversal of the pandemic-era pause on collections that ended in May 2025. The move follows the Biden administration’s blocked debt forgiveness efforts and aims to recover unpaid loans, though critics warn it will harm financially struggling borrowers and prioritize enforcement over affordable repayment options.