Story perspectives

Health Workers Face Loan Burdens Amid Forgiveness Delays

12/30/2025

Center

Nurse Faces Loan Uncertainty

Misty Knapp, a public service nurse, is concerned about her student-loan forgiveness under the Public Service Loan Forgiveness (PSLF) program, with six payments remaining and delays since summer 2024 due to litigation.
Starting January 2026, wage garnishments will resume for borrowers in default, and forgiven loans will again be taxable, increasing financial burdens.
U.S. Representative Jill Tokuda introduced the Loan Equity for Advanced Professionals Act to reverse federal loan limits for health professionals, arguing it exacerbates workforce shortages.

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Trump's Wage Garnishments

U.S. President Donald Trump’s administration will begin wage garnishments for defaulted student loan borrowers in January 2026.
Notices will be sent to about 1,000 borrowers starting January 7, 2026, with more notifications each month.
The move raises concerns because many Americans face financial struggles amid rising living costs.
Wage garnishments could withhold up to 15% of a borrower's take-home pay.
Borrowers will receive a notice 30 days before any deductions.

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Nurse Faces Loan Uncertainty

Misty Knapp, a public service nurse, is concerned about her student-loan forgiveness under the Public Service Loan Forgiveness (PSLF) program, with six payments remaining and delays since summer 2024 due to litigation.
Starting January 2026, wage garnishments will resume for borrowers in default, and forgiven loans will again be taxable, increasing financial burdens.
U.S. Representative Jill Tokuda introduced the Loan Equity for Advanced Professionals Act to reverse federal loan limits for health professionals, arguing it exacerbates workforce shortages.

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