WASHINGTON (TNND) — The Trump administration plans to begin garnishing wages from student loan borrowers who are in default starting in 2025, according to multiple reports.
Wage garnishing, or the enforcement of employers to withhold money and send it to a creditor or agency to pay off debt, was originally paused as relief during the pandemic.
“We expect the first notices to be sent to approximately 1,000 defaulted borrowers the week of January 7,” an Education Department spokesperson told NPR.
A borrower will be sent a notice of the government’s intent 30 days before the seizure, according to the wage garnishing policy on studentaid.gov. Up to 15% of an employee’s pay can be garnished, according to the site.
Nearly 5 million borrowers are in default, according to the American Enterprise Institute.
A borrower is in default when they have not made a payment in more than 270 days. The federal government also has the right to seize tax refunds and Social Security benefits.
This was resumed by the Trump administration in May. At the time, the administration said garnishments would start again in the summer.
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