The U.S. Education Department will begin garnishing wages for defaulted student loan borrowers starting in early January 2026, with notices being sent to about 1,000 borrowers the week of January 7. This marks the resumption of wage garnishment after a pause during the COVID-19 pandemic, affecting millions of borrowers currently in default. They are going after paychecks, but if you are collecting a pension or social security they'll go after that. Dept of Ed can seize up to 15% of a student loan holder’s after-tax income to put toward their debt. By law, borrowers must be left with at least 30 times the federal minimum hourly wage ($7.25) a week, which is $217.50.
