Overview
- The Department of Education will send roughly 1,000 wage-garnishment notices the week of Jan. 7, the first such action since the pandemic pause.
- Initial targets are borrowers who have gone at least nine months without a payment, with withholdings that can reach up to 15% of pay and vary by income.
- Officials say involuntary collections will proceed only after required notice, and experts note federal student loan garnishments can occur without a court order.
- Recipients are advised to respond within 30 days and contact the government at myeddebt.ed.gov to discuss options such as loan rehabilitation.
- The rollout is expected to grow monthly, with 5.5 million borrowers currently in default on about $140 billion in debt, and tax refunds can also be seized in collections.