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Yes, the Department of Education Will Garnish Your Wages for Defaulted Student Loans. Here's What to Do

  • The Education Department will refer student loans in default for collection starting next month.
  • This action resumes referrals paused since March 2020 under temporary pandemic relief.
  • The department will begin sending notices about involuntary collection later this summer.
  • Roughly 5.3 million borrowers currently face default on federal student loans.
  • Borrowers in default can pursue options like loan rehabilitation to resolve this status.
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  • 56% of the sources are Center
56% Center
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The Berkshire Eagle broke the news in on Thursday, April 24, 2025.
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