Trump administration to resume wage garnishment for student loan defaulters

Al JazeeraCenterEN 2 min read 100% complete by Andy HirschfeldDecember 23, 2025 at 09:37 PM

AI Summary

medium article 2 min

In January 2026, the Trump administration will resume wage garnishment for borrowers who have defaulted on their federal student loans, a practice paused during the COVID-19 pandemic. The Department of Education confirmed that notices will begin on January 7, initially impacting approximately 1,000 borrowers, with the number increasing monthly. While the department did not clarify the selection process, it stated that garnishments occur after borrowers receive sufficient notice and opportunity to repay. The government can garnish up to 15% of a borrower's take-home pay, provided they are left with at least 30 times the federal minimum wage per week. This resumption occurs amidst rising prices and a cooling labor market, affecting a portion of the millions of Americans holding student loan debt.

Key Entities & Roles

Key Player Opposition Context

United States ×260% United States Department of Education 70% Donald Trump ×280%

Keywords

wage garnishment 100% student loans 90% default 80% department of education 70% economic pressure 60% federal minimum wage 50% covid-19 pandemic 50% job losses 40%