The Trump administration has announced plans to resume wage garnishment for certain federal student loan borrowers beginning in 2026, marking a major shift in student loan enforcement policy. The move is expected to affect borrowers who have fallen into default and failed to make arrangements to repay their loans or enroll in approved repayment programs.
According to federal officials, the policy will allow the U.S. Department of Education to garnish a portion of wages without a court order, a practice that was widely used before being paused during previous student loan relief efforts. Wage garnishment typically allows the government to withhold up to 15 percent of a borrower’s disposable income to recover unpaid federal student debt.
The administration argues that resuming garnishment is necessary to restore accountability to the federal student loan system. Officials say years of payment pauses, expanded forgiveness programs, and relaxed enforcement have contributed to rising delinquency rates and increased financial pressure on the student loan program as a whole.
Under the plan, borrowers in default will receive advance notice before garnishment begins, along with information on how to avoid wage withholding. Options may include entering an income-driven repayment plan, loan rehabilitation, or consolidation into a new federal loan. Borrowers who take action within the required timeframe can prevent garnishment from taking effect.
Supporters of the policy say it encourages borrowers to reengage with their loans and protects taxpayers who ultimately back federal student lending. “The goal is not punishment,” one administration official said, “but ensuring the system functions fairly and sustainably.”
However, the announcement has drawn criticism from consumer advocates and student debt groups, who warn that wage garnishment could place serious financial strain on low- and middle-income borrowers. Critics argue that many borrowers remain financially vulnerable due to inflation, housing costs, and lingering economic uncertainty, making aggressive collection measures risky.
Advocates also point out that wage garnishment can make it harder for borrowers to cover basic expenses such as rent, food, and healthcare. They are urging the administration to expand repayment flexibility and increase outreach efforts before implementing enforcement actions.
The policy is expected to apply only to borrowers with federal student loans, not private student debt. It also does not affect borrowers who are current on payments or enrolled in approved repayment or forgiveness programs. Officials emphasized that garnishment will be a last resort for those who remain unresponsive to repeated notices.
Experts recommend that borrowers review their loan status well ahead of 2026 and explore available options. Checking loan accounts, updating contact information, and enrolling in income-based repayment plans can help prevent default and avoid wage withholding.
As the administration prepares to roll out the policy, the debate over student loan enforcement is likely to intensify. With millions of Americans still carrying student debt, the resumption of wage garnishment underscores a broader shift toward stricter federal oversight and repayment enforcement.
The coming months will be critical as borrowers, policymakers, and advocacy groups respond to what could become one of the most consequential student loan collection actions in years.
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