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Education Department to start garnishing pay from some student loan borrowers in default

By Molly Parks
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The Education Department will start wage garnishment for defaulted student loan borrowers in the new year.

Starting in early 2026, loan holders can begin garnishing pay — or order the employers of defaulted loan borrowers to withhold up to 15% of their disposable income — so they can collect the defaulted debt payments. The Department of Education confirmed the impending timeline to the Washington Examiner on Tuesday.

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Colleges and Universities Debt Department of Education Education Higher Education Linda McMahon Student loans