The Trump Administration will begin garnishing the salaries of delinquent student loan borrowers starting in January 2026, resuming a collection practice that had been suspended since the beginning of the pandemic. COVID-19.

The measure, confirmed by the Department of Education to CNBC, tightens federal policy on student debt and potentially affects millions of families across the country.

According to authorities, around 1,000 borrowers will receive wage garnishment notices starting the week of January 7. That number will grow progressively in the following weeks and months, as the government intensifies collection efforts against those who accumulate prolonged payment arrears.

End of forbearance after the pandemic

It will be the first time since 2020 that a portion of borrowers' wages is at risk of being directly garnished.

During the health emergency, the federal government suspended forced collections as part of a broad economic relief package. However, last May, the Trump Administration ended those moratoriums and resumed collecting on student loans, including those in default. According to official data, more than 42 million Americans have federal student loans, with accumulated debt exceeding $1.6 trillion. Of that total, more than five million borrowers are already in default—defined as a delay of at least 270 days—a figure that could climb to 10 million, according to White House estimates released last semester. How will the garnishment work? The federal government has broad powers to recover debts, including withholding tax refunds, Social Security benefits, and wages. In the case of student loans,The Department of Education can garnish up to 15% of a borrower's net income. The law, however, establishes a protection floor: workers must retain at least the equivalent of 30 times the federal minimum wage per hour per week, about $217.50. Authorities assured that garnishments will only be applied after borrowers receive at least 30 days' notice and have the opportunity to regularize their situation. The Department of Education defended the resumption of collections, stating that it seeks to "protect taxpayers from bearing the cost of loans that borrowers voluntarily accepted." Consumer advocacy organizations have criticized the decision and urge debtors to contact the Government's Default Resolution Group to explore alternatives such as loan rehabilitation and more accessible payment plans before wage garnishment takes effect.