US EditionTrump Administration Issues Wage Garnishment Notices for Student Loan Defaulters
The Education Department is sending 1,000 wage garnishment notices this week as part of efforts to collect on federal student loans in default after repayment resumed in 2023.
- On Jan. 7, 2026, the U.S. Department of Education began sending 1,000 notices this week warning Colorado student loan borrowers in default their wages may be garnished.
- After the pandemic-era repayment pause, the Department of Education restarted repayments in October 2023 and announced in April 2025 it would resume collections including wage garnishment.
- Federal rules permit withholding specified shares of pay, refunds and benefits; borrowers receiving notices have 30 days to arrange payment or request a hearing, and the Treasury Offset Program requires at least 65 days' mailed notice.
- The move could affect millions of borrowers who are nine months or more past due, including just over 5 million pre-pandemic defaulters, with some low-income families risking lost tax refunds this year.
- Legal and advocacy groups note routes out of default, including rehabilitation and consolidation, while White House Spokesperson Karoline Leavitt said `If you take out a loan, you have to pay it back. It's very simple`.
20 Articles
20 Articles
Trump admin starts sending notices to student loan borrowers in default ahead of wage garnishment
The Trump administration is set to resume wage garnishment for federal student loan borrowers in default, with notices going out starting on Wednesday.Student loan borrowers in default were given a reprieve from wage garnishment under a pandemic-era pause on collections, which has since elapsed and allowed the garnishment process to resume.A Department of Education spokesperson told FOX Business that "we expect the first notices to be sent to ap…
King5 News
Trump administration issues wage garnishment notices for student loan defaulters
The initial wave will target borrowers who were already in default before the pandemic.
Federal government may take up to 15% of some Coloradans' paychecks. Here's why.
Starting this week, some Colorado student loan borrowers in default could receive notices their wages may be garnished.Its a move by the U.S Department of Education that could affect millions who are nine months or more past due.During the pandemic period, there was a repayment pause for all borrowers during that time that existed throughout the pandemic period, and as well as post pandemic, Executive Director of Financial Aid and Scholarships a…
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