Story perspectives

Student Loan Garnishments Begin Amid Ongoing Financial Struggles

1/7/2026

Summary

Story summary

The U.S. Department of Education will begin wage garnishment for 1,000 student loan borrowers on January 7, 2026.
This follows the five-year pause on loan collections.
Notices will be sent 30 days before garnishment, up to 15% of disposable income.
Critics, including Persis Yu of the Student Borrower Protection Center, call the move harsh amid financial struggles.
Biden administration's loan forgiveness efforts have faced legal challenges, complicating relief for borrowers.

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Story summary

The U.S. Department of Education will begin wage garnishment for 1,000 student loan borrowers on January 7, 2026.
This follows the five-year pause on loan collections.
Notices will be sent 30 days before garnishment, up to 15% of disposable income.
Critics, including Persis Yu of the Student Borrower Protection Center, call the move harsh amid financial struggles.
Biden administration's loan forgiveness efforts have faced legal challenges, complicating relief for borrowers.