Overview
- About 1,000 borrowers received the first wage‑garnishment notifications the week of Jan. 7, with larger batches planned in the coming months.
- Employers can be directed to withhold up to 15% of a borrower’s disposable pay once the 30‑day response window closes.
- The government also resumed seizing federal tax refunds and certain benefits in May 2025, and borrowers get 65 days’ notice before those offsets occur.
- Default generally begins after roughly 270 days without payment, and borrowers can request a hearing within 30 days or use rehabilitation—nine on‑time monthly payments—or consolidation to exit default.
- Advocates warn renewed collections will heighten financial strain and disproportionately affect Black borrowers, with recent data showing Black unemployment at 8.3%.