December 23, 2025 | WASHINGTON, D.C. — Beginning the week of January 7, 2026, the U.S. Department of Education (ED) plans to start garnishing wages from student loan borrowers in default. This will be the first time that borrowers in default are subject to losing their pay over student loans since the COVID-19 pandemic—approximately five years.

In response, Protect Borrowers Deputy Executive Director and Managing Counsel Persis Yu, issued the following statement: 

“At a time when families across the country are struggling with stagnant wages and an affordability crisis, this Administration’s decision to garnish wages from defaulted student loan borrowers is cruel, unnecessary, and irresponsible. As millions of borrowers sit on the precipice of default, this Administration is using its self-inflicted limited resources to seize borrowers’ wages instead of defending borrowers’ right to affordable payments.

“As we just saw, there are still nearly a million unprocessed Income-Driven Repayment applications, and this Administration has admitted to denying en masse borrowers who applied and requested the U.S. Department of Education’s help in accessing the most affordable payment option.

“Finally, during the last Trump Administration, hundreds of thousands had their wages improperly taken at the peak of the pandemic because the U.S. Department of Education was unable to control this tool. It is irresponsible to turn on a debt collection tool that the Administration cannot turn off.”

Borrower Resources

  • If borrowers do not know if their loan is in default and will be subject to garnishment, they can go to the Federal Student Aid website. 
  • Borrowers who are not yet in default can look into Income-Driven Repayment options to avoid default. 
  • Borrowers who are already in default should look into rehabilitation or consolidation to get out of default. 
  • Borrowers who receive a notice from ED in January can request a hearing to object on the grounds that the garnishment would lead to financial hardship and ask to reduce the amount garnished. Borrowers should also check if they are eligible for discharge. 
  • Finally, if borrowers are having trouble finding information, they can reach out to their Members of Congress and request casework help. For more information on requesting casework assistance: protectborrowers.org/caseworktool.

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About Protect Borrowers

Protect Borrowers (formerly Student Borrower Protection Center) is a nonprofit organization led by a team of experts, lawyers, and advocates fighting to build an economy where debt doesn’t limit opportunity. We investigate financial abuses, take predatory companies to court, and push for policies to protect working people from debt traps. We aim to deliver immediate relief to families while building power, driving systemic change, and fighting for racial and economic justice.

Learn more at protectborrowers.org or follow us on social @BorrowerJustice.