If you have federal student loans and are behind on payments, an important change is happening right now.
According to a recent report by The Wall Street Journal, the U.S. Department of Education has begun restarting wage garnishment for borrowers who are in default on their federal student loans. After several years of pandemic-related pauses, enforcement is resuming—and some borrowers may start seeing deductions from their paychecks as early as this year.
This post explains what wage garnishment is, who may be affected, and what options borrowers still have.
What Is Student Loan Wage Garnishment?
When a federal student loan goes into default—generally after 270 days of missed payments—the government gains powerful collection tools.
One of those tools is administrative wage garnishment, which allows the federal government to:
Deduct up to 15% of a borrower’s disposable wages
Do so without a court judgment
Continue garnishment until the loan is brought out of default or resolved
In addition to wages, the government can also withhold:
Federal tax refunds
Certain federal benefits
What’s Happening Now?
The Education Department has stated that it is:
Sending initial wage garnishment notices
Expanding enforcement in waves over the coming months
Targeting borrowers who remain in default and have not taken action
If you receive a notice, you typically have 30 days to respond before garnishment begins.
Who Is Most at Risk?
You may be at higher risk if:
Your federal student loans are in default
You have not enrolled in a repayment or rehabilitation program
You have ignored recent communications from your loan servicer
Importantly, this applies to federal student loans, not private student loans (which follow different rules and usually require a court process).
Can Wage Garnishment Be Stopped?
In some cases, yes—but timing matters.
Borrowers in default may be able to:
Request a hearing to challenge garnishment due to error or financial hardship
Consolidate defaulted loans into a new federal loan
Enter a rehabilitation or repayment plan to restore good standing
Each option has tradeoffs, and not every borrower qualifies for every path.
What Borrowers Should Do Now
If you are behind on federal student loans:
Open and read all notices from the Education Department or your loan servicer
Confirm whether your loans are in default
Act quickly if you receive a wage garnishment notice—deadlines matter
Consider speaking with:
A student loan professional
A consumer or debt attorney
A legal aid organization
A Quick Disclaimer
This article is for informational purposes only and is not legal advice. Student loan situations can vary based on income, loan type, and individual circumstances. If you are facing wage garnishment or default, speaking with a qualified professional may help you understand your options.
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