A pandemic‑era pause on federal student loan collections has come to an end.
“The clock is ticking,” said Ted Rossman, senior analyst at Bankrate, as the Trump administration moves forward with plans to garnish the wages of millions of borrowers who are behind on their federal student loans.
“Wage garnishment basically means that a lender — or in the case of federal student loans, the federal government — can seize some of your paychecks,” Rossman explained.
A borrower enters default after being at least 270 days late on a payment. This week, the Department of Education sent notifications to around 1,000 defaulted borrowers, but that number is expected to grow in the coming months as collection efforts ramp up.
Student loan debt: What to know about wage garnishment
