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What student loan borrowers should do when faced with wage garnishment

Gone are the days when defaulted student loan borrowers could ignore collection actions without consequence. Starting January 7, 2026, the federal government will begin garnishing wages for borrowers in default after more than 270 days past due. Initial notices will be sent to around 1,000 borrowers, but the number of notices is expected to grow steadily throughout 2026 as additional defaults are processed. Even if your current balance feels overwhelming, waiting will only de

Federal student loan wage garnishment is back and set to begin the week of January 7, 2026 , according to recent federal announcements. Notices will go out to borrowers in default, and if you don’t act quickly, your employer could be asked to withhold part of your paycheck to repay defaulted federal student loans. This is a seismic shift from the pandemic-era relief many borrowers experienced. After years of payment breaks, federal collections are resuming and could impact mi

Rehabilitation is one of the most powerful tools borrowers can use to get out of federal student loan default. It allows you to make a series of affordable monthly payments based on your income. Most borrowers qualify for payments as low as five dollars per month. Once you complete the required number of payments, your loan leaves default, collections activity stops, and your credit report updates to show the account in good standing. Rehabilitation can also remove wage garni