Originally published on 1/20/26

In 2025, the federal government announced it would restart student loan collection efforts and reinstate wage garnishment—a practice that has been suspended since March 2020. 

Originally planned for summer 2025, the timeline was pushed back to January 7, 2026. Now, collection efforts have once again been paused by President Donald Trump and the U.S. The Department of Education. But what exactly will the wage garnishment look like? And when will the White House actually restart the program? We look into all of that and more below.

What is wage garnishment? 

Wage garnishment occurs when a court or legal professional determines that a portion of a person’s paycheck must automatically go toward paying  off their debts. Usually, this amount is around 15 percent of one’s disposable income and is required to be reported to your employer. 

In the case of student loans, once wage garnishment begins, part of your paycheck will go toward paying off the remaining balance on your loan—but only if you’ve defaulted on your loan. To prevent this from happening, you can try negotiating the repayment terms in a hearing attended by you and your loan holder or you can pay off your loan (if you’re able).

“If you request a hearing, your loan holder will review your objection(s) and render a decision on the garnishment of your wages within approximately 60 days of your request,” according to the Student Aid website. “If the outcome is favorable for all debts included in the garnishment, garnishment may be stopped.”

They also explain that you can “stop garnishment that’s already underway,” by entering into a rehabilitation agreement for your debt. “After you make the fifth qualifying payment, the garnishment will be suspended until you complete the program.” For more information on entering this type of agreement  and to find out what you need to do to call a hearing, click here.

What to know about student loan wage garnishment in 2026

On Friday, January 16, the Education Department announced that wage garnishment would once again be put on hold, with Nicholas Kent, the department’s higher education chief, saying in a statement, “The department determined that involuntary collection efforts such as Administrative wage garnishment and the Treasury Offset Program will function more efficiently and fairly after the Trump Administration implements significant improvements to our broken student loan system.” 

He also said that by delaying it, the department believes that they will remain “committed to helping student and parent borrowers resume regular, on-time repayment, with more clear and affordable options.”

Following the announcement, experts began commenting on how this pause will affect borrowers. Michele Zampini, an associate vice president of federal policy and advocacy at The Institute for College Access & Success, told CNBC, “The delay will give borrowers a fighting chance at getting their loan into good standing, enrolling in a more affordable repayment plan and protecting their hard-earned wages from garnishment.” 

Experts also shared what people who are expected to be enrolled in wage garnishment should do to try to help themselves when collections begin. According to CNBC, these include: 

• Filing your taxes as soon as possible can help you garnishment on your refund. 
• Getting as up-to-date on your student loan payments as you can to minimize how much they take. 
• Finding an affordable repayment plan to help you pay off your balance over a select period of time. 

As of publication, there is no news on when exactly the Education Department will resume wage garnishment, but it is expected to be at some point in 2026.

How to prepare for student loan wage garnishment 

For Americans expecting to be enrolled in wage garnishment come 2026, here are some expert-approved things you can do to prepare yourself. 

The first step is to calculate what 15 percent of your paycheck will be and determine if you can afford to lose that amount of money. If you can’t, consider reaching out to the Default Resolution Group to see if they can prevent the default withdrawals from occurring. 

“Once garnishment begins, there will be a flood of calls, and processing times for rehabilitations could be much longer depending on volume,” Scott Buchanan, an executive director at the Student Loan Servicing Alliance, told CNBC. “Use the next month or so to call the Default Resolution Group and discuss your options to avert garnishment.”

The second is to consider paying off some of your student loans now, before these garnishments begin. Doing so will cut back on the amount you owe on your loans and prevent these automatic withdrawals from occurring for an extended period of time.

And of course, if all else fails you can always sit down with a financial expert and figure out what they recommend for you based on your income and how much student loan debt you have.

And those tips don’t just apply to younger Americans. According to personal finance expert Suze Orman, host of the Women & Money podcast and author of The Ultimate Retirement Guide for 50+ “The federal government can garnish your Social Security checks, too.” 

“That’s right, up to 15 percent of your monthly benefit can be taken if you’re in default. But the good news is you have options,” she continued. “You can combine your loans into a new one, and you’re immediately eligible for new repayment plans. Just know that consolidation doesn’t remove the default from your credit history.”

Orman also says, “If you’re struggling, you can ask for a hardship hearing. Bring documentation—medical bills, proof of dependents and anything that shows your financial situation.”

Link to original: https://www.womansworld.com/life/money/what-student-loan-wage-garnishment-is-and-how-to-stop-it