Overview
- The department will send initial garnishment notices to about 1,000 borrowers the week of Jan. 7, 2026, with larger batches to follow monthly.
- Federal rules allow up to 15% of a borrower’s disposable pay to be withheld without a court order after required notice.
- Collections through offsets of tax refunds and other federal payments resumed earlier this year after the pandemic-era pause ended.
- Borrower advocates, including the Student Borrower Protection Center, condemned the plan as harmful to households already under financial strain.
- Separate from garnishment, forgiven balances from most income-driven repayment plans become taxable again starting Jan. 1, 2026, while Public Service Loan Forgiveness remains tax-free.