Wage Garnishment On Defaulted Student Loans Restarts This Fall

The U.S. Department of Education, with the Department of Treasury, plans to resume administrative wage garnishment on defaulted federal student loans this fall, restarting involuntary collections after a months-long pause announced earlier in 2026.

The timing will likely reflect the end of the period of time for borrowers to select a new repayment plan. While specific details have not been announced, multiple members of the administration have pointed to getting borrowers back into repayment on their loans.