Title: The Resumption of Wage Garnishment for Student Loan Borrowers in Default: A Comprehensive Analysis
The Trump administration's decision to resume garnishing wages from student loan borrowers in default starting early 2026 is a significant development that warrants careful analysis. This move comes after a years-long pause due to the pandemic, and it will have far-reaching implications for millions of Americans who are struggling with their student loans.
Historically, wage garnishment has been used as a last resort by lenders when borrowers fail to make payments on their federal student loans. The process involves seizing up to 15% of a borrower's paycheck to repay the outstanding debt. However, during the pandemic, this practice was temporarily halted in an effort to provide relief to struggling borrowers.
Now that the pause has ended, approximately 12 million borrowers who are either delinquent on their loans or in default will be affected by this decision. This includes about 5.5 million borrowers currently in default and another 3.7 million who are more than 270 days late on their payments. Additionally, there are 2.7 million borrowers in the early stages of delinquency.
The resumption of wage garnishment is expected to cause significant economic strain for low-income and middle-class borrowers, especially given that it will coincide with an increase in healthcare costs due to premium increases under the Affordable Care Act health insurance plan in 2026. Betsy Mayotte, president and founder of The Institute of Student Loan Advisors, highlights this concern, stating that these two factors together could put considerable pressure on borrowers' finances.
From a policy perspective, it is crucial to consider the long-term effects of resuming wage garnishment for student loan borrowers in default. While it may help recover some outstanding debts, there are concerns about its impact on borrowers who are already struggling financially. It remains to be seen how this decision will affect the overall landscape of student loans and whether alternative solutions can be found to address the growing issue of delinquency and default among federal student loan borrowers.
In conclusion, the resumption of wage garnishment for student loan borrowers in default is a significant development that warrants careful consideration from policymakers, lenders, and borrowers alike. As we move forward into 2026 and beyond, it will be important to monitor the impact of this decision on affected individuals and explore potential alternatives to ensure fair treatment for all student loan borrowers.
Source: [Original Article](https://www.npr.org/2025/12/23/nx-s1-5653312/student-loans-default-education-department) #student
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