Education Department to Start Garnishing Pay of Defaulted Student-Loan Borrowers

The Wall Street JournalTuesday, December 23, 2025 at 5:52:00 PM
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Education Department to Start Garnishing Pay of Defaulted Student-Loan Borrowers
  • The Education Department is set to begin garnishing the wages of borrowers who have defaulted on their student loans, a process that was initially expected to start in the summer but was delayed due to a government shutdown. This decision marks a significant shift as the department resumes actions that were paused during the COVID-19 pandemic.
  • This development is crucial for the Education Department as it seeks to recover funds from defaulted loans, which can impact the financial stability of the federal student loan program. The move may also affect thousands of borrowers who are already facing financial difficulties.
  • The garnishment of wages highlights ongoing tensions surrounding student loan policies, particularly as the Trump administration moves to end programs initiated under the Biden administration. This shift raises questions about the future of student loan repayment strategies and the implications for millions of borrowers who have relied on previous relief measures.
— via World Pulse Now AI Editorial System

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