Jan 2 • General discussion
📢 Student Loan Update — What You Need to Know
The federal government is resuming wage garnishment for student loans in default starting in January 2026. This is the first time this tool has been used since the pandemic-era pause ended.
🧾 Key points:
• Notices will begin the week of Jan. 7 to borrowers who are in default (typically 270+ days past due).
• Once notified, borrowers have at least 30 days before wage garnishment begins.
• Under federal law the government can withhold up to 15% of your after-tax income to repay the debt.
• It’s not automatic garnishment — you get notice and a chance to respond.
📊 Who this affects:
• Borrowers in default on federal student loans. Millions are currently in that status.
• People whose loans fell into default before or after the pandemic and were not rehabilitated.
💡 What to do now:
2. Open all mail from the Dept. of Ed — these notices will first come by mail.
3. If you receive a garnishment notice, you can:
• Request a hearing within 30 days to dispute it.
• Work with the Dept. of Ed to rehabilitate or consolidate your loan to stop garnishment.
This change restores a collection tool unused since March 2020 and signals a shift toward more active enforcement of defaulted debt.
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📢 Student Loan Update — What You Need to Know
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