Wage garnishing over defaulted student loans begins in January, Trump admin warns
Millions of borrowers face wage garnishing with letters to be sent in weeks
- Millions of student loan borrowers who are in default face wage garnishment beginning in January.
- The Trump administration said it will start sending notices to approximately 1,000 borrowers the week of January 7, with more notices to come at an increasing scale each month.
- Borrowers are considered in default if they are 270 days past due on payments and will receive 30 days' notice before collection activities commence.
- This action follows the Trump administration's earlier decision to end the pandemic-era pause on student loan payments and begin collecting on defaulted debt.
- Persis Yu from the Student Borrower Protection Center criticized the move, labeling it "cruel, unnecessary, and irresponsible" given current economic challenges.