What's happened
Starting the week of January 7, 2026, the US Department of Education will begin wage garnishments for about 1,000 defaulted student loan borrowers, with notices increasing monthly. The move marks a return to collection efforts after a pandemic pause, amid ongoing economic pressures.
What's behind the headline?
The upcoming wage garnishments highlight the US government's shift back to aggressive debt collection after pandemic-era leniency. While the notices will initially impact a small group, the scale is expected to grow, affecting millions in default. This move underscores ongoing tensions between debt recovery and economic hardship, especially as many borrowers face stagnant wages and rising living costs. Critics argue that the policy disproportionately harms families already struggling, with some experts warning it could deepen financial instability. The administration's approach reflects a broader effort to enforce repayment, but it risks alienating borrowers who see debt relief as a right, not a privilege. The decision also signals a political stance on debt collection, emphasizing fiscal responsibility over borrower relief, which could influence future policy debates.
What the papers say
The articles from Al Jazeera, NY Post, The Independent, AP News, and the New York Times collectively depict a government re-engaging in wage garnishments after a prolonged pause. While all sources agree on the resumption, perspectives differ: Al Jazeera emphasizes the impact on families and economic pressures, with Julie Margetta Morgan criticizing the move as punitive. The NY Post highlights the legal authority and the number of affected individuals, framing it as a necessary enforcement step. The Independent and AP News focus on the procedural aspects and the criticism from borrower advocates, like Persis Yu, who argue the policy is unfair during an economic crisis. The NY Times provides a detailed timeline and underscores the legal and political context, noting the move's significance in the broader debate over student debt relief and collection practices.
How we got here
The US government paused wage garnishments during the COVID-19 pandemic, extending a relief period that began in March 2020. In May 2025, the Trump administration announced the resumption of collection activities on defaulted student loans, including wage garnishments, tax refund seizures, and Social Security benefits. The Biden administration extended a grace period, but the policy was reinstated in December 2025, affecting millions of borrowers in default, with notices set to be sent starting January 7, 2026. This follows years of legal and political debates over student debt relief and collection methods.
Go deeper
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