The Trump administration plans to start garnishing wages for some borrowers who have not paid back their student loans. This is the first time the federal government has taken this action since the COVID-19 pandemic began.
Starting January 7, affected borrowers will receive notices from the Department of Education.
Initially, the policy will impact about 1,000 borrowers, with more borrowers expected to be affected over time. The spokesperson said, “The notices will increase in number each month.”
When Al Jazeera asked how they chose the borrowers for this first round of garnishments and how many more might be affected, the agency did not provide details. However, they noted that collections only happen after borrowers have received enough notice and an opportunity to repay their loans.
Under federal law, the government can take up to 15 percent of a borrower’s take-home pay if the borrower still has at least 30 times the federal minimum wage per week. The current federal minimum wage is $7.25 an hour, a rate that has not changed since July 2009.
About one in six American adults has student loan debt, which totals around $1.6 trillion. As of April, more than 5 million borrowers had not made a payment in over a year, according to the Education Department.
Economic Pressure Mounts for Many Americans
The government plans to start garnishing wages as many Americans face economic pressure from rising prices and a slower job market. In 2025, more than 1.1 million people lost their jobs because there weren’t many new jobs available. In October, some jobs were lost, but in November, a few jobs were added.
By the end of these months, the unemployment rate went up to 4.6 percent, which was the highest it had been since 2021.
Julie Margetta Morgan, a former deputy undersecretary at the Education Department under President Joe Biden, told Al Jazeera, “Families are forced to choose between paying bills and putting food on the table. The Trump administration’s decision to start garnishing wages takes away even that small choice from borrowers who are struggling.”
Morgan added, “Instead of fixing the affordability crisis that prevents Americans from paying their student loans, the government is punishing families and making them give up basic needs.”
In addition to wages, the federal government can also take money from tax refunds, Social Security benefits, and certain disability payments.
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