Education Department Starts Wage Garnishments Early 2026
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Washington — The Department of Education said Tuesday it will begin garnishing wages of borrowers in default, sending notices to about 1,000 people the week of January 7 and expanding monthly in coming months. Millions are considered in default after 270 days without payment. The department will provide 30 days' notice and said collections will proceed only after borrowers receive notice and opportunity to repay. The move follows the May end of the pandemic payment pause and resumption of collections, including tax refund offsets; payments restarted October 2023 with a one-year grace extension. Based on 6 articles reviewed and supporting research.
Prepared by Christopher Adams and reviewed by editorial team.
Timeline of Events
- Pandemic payment pause began in 2020, halting most federal collections.
- October 2023: federal student loan payments restarted; a one-year grace extension followed.
- May (reported): administration ended pandemic-era leniency; collections resumed via offsets.
- Week of January 7, 2026: roughly 1,000 notices to be sent initiating garnishment phase.
- Early 2026 onward: wage garnishments will expand monthly after 30-day notices.
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Federal government entities and loan servicers may recoup defaulted funds and reduce outstanding unpaid loan balances through resumed collections.
Borrowers in default will face income loss and heightened financial hardship when wage garnishment is enforced.
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Education Department Starts Wage Garnishments Early 2026
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