Wage Garnishment On Defaulted Student Loans Restarts This Fall

Wage Garnishment On Defaulted Student Loans Restarts This Fall

Author: The College Investor May 27, 2026 Duration: 6:42

The U.S. Department of Education, with the Department of Treasury, plans to resume administrative wage garnishment on defaulted federal student loans this fall, restarting involuntary collections after a months-long pause announced earlier in 2026.

The timing will likely reflect the end of the period of time for borrowers to select a new repayment plan. While specific details have not been announced, multiple members of the administration have pointed to getting borrowers back into repayment on their loans.


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