The United States Department of Education has officially confirmed plans to restart wage garnishments for federal student loan borrowers in default. According to a report from the Washington Post, the involuntary collection process will begin in early January 2026. This move marks the first time since the start of the pandemic nearly six years ago that the federal government will seize paychecks to recoup past-due student debt. The announcement signals an aggressive shift in the administration’s approach to managing the federal loan portfolio.
Starting the week of January 7, the department will notify an initial group of approximately 1,000 borrowers regarding the upcoming seizure of their wages. Following this initial wave, officials expect to send notices to larger groups of borrowers every month. By law, the government must provide individuals with a 30-day warning before any funds are withheld. During this period, borrowers have the option to challenge the order, pay their balance in full, or negotiate new repayment terms to avoid the penalty.
Under federal regulations, the Department of Education has the authority to withhold up to 15 percent of a borrower’s disposable income. These garnishments typically continue until the debt is fully satisfied or the borrower takes formal steps to exit default status. Currently, an estimated 5.3 million borrowers have not made a payment in at least 360 days. The administration has expressed that these measures are necessary to protect taxpayers and ensure the financial integrity of the student loan system.
The resumption of wage garnishments follows earlier actions taken by the administration in May 2025 to restart the seizure of tax refunds and Social Security benefits. Education Secretary Linda McMahon has been vocal in her criticism of previous policies, arguing that they provided borrowers with false expectations regarding debt cancellation. The department maintains that returning to involuntary collections will encourage borrowers to engage with repayment programs and improve their long-term financial health.
Advocates for borrowers have criticized the decision, pointing to the economic strain many families face. They argue that the sudden resumption of harsh collection tactics could push vulnerable individuals deeper into poverty. However, the Education Department emphasized that multiple outreach efforts occurred over the last year to warn borrowers of these consequences. The administration’s current focus remains on shepherding the student loan program according to established law rather than pursuing mass forgiveness.
As the January deadline approaches, officials are urging defaulted borrowers to contact the Default Resolution Group immediately. Proactive communication can still allow individuals to enroll in income-driven repayment plans or pursue loan rehabilitation. This historic return to active debt collection serves as a stark reminder of the changing landscape for millions of Americans carrying federal student debt.
