Beginning the first week of January, the era of student loan leniency officially ends. 

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The Trump administration will resume administrative wage garnishment for defaulted federal student loan borrowers, marking the first time these “paycheck raids” have occurred since the pandemic-era pause began nearly six years ago.

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Wage Garnishment

Starting on Jan. 7, 2026, the Department of Education will dispatch the first wave of notices to roughly 1,000 defaulted borrowers. The Trump administration plans to scale the efforts month-over-month, eventually targeting the estimated 5 million Americans currently in default.

Under federal law, the government ...