Student Loan Wage Garnishment Starts This Week From DOE

The headline refers to the restart of federal student loan wage garnishments for borrowers in default, with the first big batch of notices going out the week of January 7, 2026, not to a new, across‑the‑board seizure of everyone’s paychecks.​

What is happening on January 7?

• The U.S. Department of Education is resuming wage garnishment for federal student loan borrowers who are in default after a long pandemic‑era pause.​

• Starting the week of January 7, about 1,000 defaulted borrowers will receive notices that their wages will be reduced, with the number of affected borrowers expected to rise each month.​

• This is part of a broader collection campaign affecting a pool of more than 5 million borrowers currently in default, but garnishment will roll out over time rather than hitting all of them on the same day.​

Who is at risk of paycheck cuts?

• Only borrowers with federal student loans who are already in default (typically 270+ days past due) are subject to this specific wage garnishment wave.​

• If a borrower is in good standing, in deferment/forbearance, or in an income‑driven plan that is current, this January 7 action does not apply to them.​

• The Education Department must give borrowers at least 30 days’ notice before garnishing wages, which means no one should see an immediate, surprise paycheck hit without prior written warning.​

How much of a paycheck can be taken?

• Under federal rules for student loan wage garnishment, up to 15% of a borrower’s disposable pay can be taken directly from their paycheck in many cases.​

• The government can also use other tools, such as seizing federal tax refunds or certain federal benefits, to collect defaulted student loans, but these are separate processes from wage garnishment.​

Is this “millions losing their whole paycheck”?

• The phrase “paycheck wipeouts” is exaggerated; federal law generally limits garnishment to a percentage of disposable income rather than the entire paycheck.​

• While millions are in default and could eventually be targeted, the initial January 7 wave concerns about 1,000 borrowers, with expansion over time, and the amount taken is capped rather than 100% of pay.​

What can affected borrowers do?

• Borrowers who receive a garnishment notice have a 30‑day window to respond: they can arrange a new payment plan, rehabilitate or consolidate loans, pay the balance, or request a hearing to contest the garnishment.​

• Contacting the loan servicer or checking the federal student aid portal to confirm loan status and explore income‑based plans can help reduce or avoid garnishment if action is taken promptly.​