The Department Of Education Will Begin Garnishing Wages For Student Loan Borrowers In Default Next Year – AfroTech
The Department of Education has announced it will be garnishing wages for individuals who are in default on their student loans, The Washington Post reports.
Beginning the week of Jan. 7, nearly 1,000 borrowers will be notified if their wages will be garnished, notes the outlet. The number of borrowers notified will increase over time. Almost 5.3 million borrowers have been in default for almost a year as of June 30, and many borrowers have been in default since before the COVID-19 pandemic, per The Washington Post. An estimated 6 million student loan borrowers were late on their payments as of August 2025, according to Urban Institute.
ABC News reports that if loans are in default, the government can carry out mandatory collection through wage garnishment or withholding tax refunds and federal benefits such as Social Security.
“We are evaluating ways to improve the fiscal health of the nearly $1.7 trillion student loan portfolio to safeguard the interests of both students and taxpayers,” Explained Ellen Keast, Department of Education press secretary for higher education, according to ABC News.
Former Under Secretary of Education James Kvaal described defaults as “tragic” for student loan borrowers, per the outlet, as they can impact credit scores and influence how much student aid can be borrowed.
Persis Yu, deputy executive director and managing counsel of advocacy group Protect Borrowers, isn’t in favor of the Department of Education’s announcement, which comes as consumers are already facing rising prices.
“As millions of borrowers sit on the precipice of default, this Administration is using its self-inflicted limited resources to seize borrowers’ wages instead of defending borrowers’ right to affordable payments,” Yu said in a statement on Tuesday, according to ABC News.
The Department of Education also announced a proposed settlement on Dec. 9 to dismantle former President Joe Biden’s Saving on a Valuable Education (SAVE) Plan, a loan-forgiveness program that allowed some borrowers to have $0 monthly payments, NPR reports.
The proposed settlement will require court approval.
“The law is clear: if you take out a loan, you must pay it back,” Under Secretary of Education Nicholas Kent explained, according to NPR. “American taxpayers can now rest assured they will no longer be forced to serve as collateral for illegal and irresponsible student loan policies.”
