Summary
President Donald Trump's administration plans to restart garnishing the wages of some borrowers who have defaulted on their student loans. This action will begin on January 7, marking the first time the federal government has implemented this measure since the COVID-19 pandemic began. About 1,000 borrowers will be initially affected, with the number expected to rise over time.
Key Facts
- President Trump's administration will garnish wages from some defaulted student loan borrowers.
- Notices to affected borrowers will start on January 7.
- Initially, about 1,000 borrowers are expected to be impacted, with more to follow.
- The government can garnish up to 15% of a borrower's income, ensuring at least 30 times the federal minimum wage per week remains.
- The federal minimum wage is $7.25 an hour.
- Approximately 1 in 6 American adults has student loan debt, totaling about $1.6 trillion.
- More than 5 million borrowers have not made a payment in over a year.
- The unemployment rate rose to 4.6% in October and November, the highest since 2021.
