Trump Administration to Resume Student Loan Wage Garnishments [View all]
Source: Newsweek
Published Dec 22, 2025 at 05:39 PM EST updated Dec 22, 2025 at 07:45 PM EST
The Trump administration will begin garnishing wages from people who have defaulted on their student loans early next year, the Education Department confirmed Monday to The Washington Post.
Why It Matters
Student loan collections were first suspended under President Donald Trump during the early days of the coronavirus pandemic, with Congress later extending the pause. President Joe Biden’s administration prolonged the moratorium and introduced a program allowing borrowers in default to rehabilitate their loans, though many remained unresolved.
Monday's announcement is among a host of major overhauls of the federal student loan repayment system coming in 2026. Many of the changes stem from President Donald Trump’s One Big Beautiful Bill Act (OBBBA), which was signed into law in July.
What To Know
Beginning the week of Jan. 7, the department told The Post it will notify about 1,000 borrowers in default that a portion of their pay will be withheld to cover past-due debt. The department said additional notices will be sent to larger numbers of borrowers in the months that follow. Newsweek has reached out to the Education Department via email on Monday afternoon for comment.
Read more: https://www.newsweek.com/student-loan-update-wage-garnishment-donald-trump-11257483
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