Five years of pandemic-era relief come to an abrupt end this month. Starting the week of January 7, the Trump administration will begin a sweeping wage garnishment campaign targeting an estimated 5.5 million Americans who have defaulted on their federal student loans – the first such enforcement action since March 2020, when the government paused collections amid the coronavirus crisis.
Approximately 1,000 borrowers will receive initial notices during the week of January 7, with the volume of garnishment notifications expected to increase substantially on a monthly basis throughout 2026, according to the Department of Education. For struggling families already living paycheque to paycheque, this represents a staggering financial blow.
