After years of pandemic-era pauses, student loan wage garnishment is officially resuming on January 7, 2026. The Department of Education is restarting collections on borrowers who are in default, about 5.3 million people nationwide.

This time around, the process moves fast. The federal government can order wage garnishment without going through the courts, and borrowers will receive a 30-day notice before any money is withheld.

In the first wave, roughly 1,000 borrowers are expected to receive notices tied directly to January paychecks, with more expected throughout the year.Up to 15% of a borrower’s disposable income can be taken.

On top of that, the government has already resumed intercepting tax refunds and offsetting Social Security benefits for those in default.

If you receive a notice, you do have options. Borrowers can pay the balance in full, negotiate a repayment plan, or request a hearing to challenge the garnishment. The restart took longer than expected due to administrative delays and systems being offline during the pause, but officials say collections are now fully back on track.

Meanwhile, new legislation signed by President Donald Trump eliminates the Graduate PLUS loan program and introduces new borrowing caps, another big shift in the student loan landscape for 2026.