FUTURISTIC DIGITAL WEALTH AGENCY

🚨 Federal Student Loan Wage Garnishment Begins January 2026 — What You Need to Know & How We Can Help 🚨

Starting the week of January 7, 2026, the U.S. Department of Education will begin sending wage garnishment notices to federal student loan borrowers who are in default (typically 270+ days past due). Notices will roll out monthly throughout the year.

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CONSUMER DEBT
🚨 IMPORTANT: Wage Garnishment for Student Loans Starts January 2026 — Act NOW!

This marks the first large-scale restart of wage garnishment since the pandemic, and it could impact millions of people who didn’t fully resolve their federal student loans after payments resumed in 2023.

URGENT NEWS

📌 What This Means for Borrowers

1. Wage Garnishment Resumes After Covid Pause

Federal student loan collections — including wage garnishment — had been paused during the pandemic and for several years afterward. Starting January 2026, the Education Department will again pursue administrative wage garnishment for borrowers whose loans are in default (typically 270+ days past due).

2. Notices First, Payments Later

Borrowers will first receive formal notices before any money is withheld. Notices are expected to be sent to around 1,000 borrowers starting January 7, with larger waves following monthly.

3. Up to 15% of Your Paycheck Could Be Garnished

Once garnishment is triggered, employers may be instructed to withhold up to 15 % of a borrower’s after-tax income to apply toward the defaulted federal loan balance.

4. Millions of Borrowers Could Be Affected

Over 5 million borrowers are currently in default on their federal student loans, and that number is expected to grow if people continue to fall behind payment requirements.

THE ECONOMY

🔎 Why This Matters

Wage garnishment can have a real impact on people’s financial lives:

• Lower take-home pay each paycheck

• Strained ability to cover living expenses

• Continued credit score harm

• Fewer options to restructure debt if default persists

Experts say this shift comes as federal collections programs fully restart after pandemic relief, and while it’s legally authorized, critics argue it places a heavy burden on already struggling borrowers.

There is also pending legislation in Congress (the Ending Administrative Wage Garnishment Act of 2025) aimed at suspending these practices, but nothing has passed yet.

TOOLS

🛑 Options to Avoid or Stop Garnishment

🛑 Options to Avoid or Stop Garnishment

If your loans are in default, garnishment isn’t automatic — and there are still actions you can take before wages are withheld:

🔹 Loan Rehabilitation

Contact your servicer and agree to a rehabilitation plan. Making a series of on-time payments can remove default status.

🔹 Consolidation

Consolidate your defaulted loan into a new Direct Loan (before garnishment begins) to eliminate default status.

🔹 Income-Driven Repayment (IDR)

Enroll in an IDR plan to reduce monthly payment obligations and prevent default.

If garnishment has already started, rehabilitation may still help end it over time.

⭐ Don’t Wait — Take Action Now

📍 If you’re in default or worried about falling into default:

• Check your status on StudentAid.gov

• Contact your loan servicer today

• Explore Income-Driven Repayment, consolidation, or rehabilitation

👇 We’ve created tools to help you navigate this:

📘 PSLF Guide & Step-by-Step Strategy
🧾 25-Page Report: The Worst Student Loan Companies
📚 FERPA School Loan Forgiveness Guide — Only $5

🎁 Includes a FREE 1-on-1 Consultation with Any Purchase

Book Consultation: $50

👉 Get your guides & support now: HERE