Jan 13, 2026
Steps to Take if Facing Collection Notices on Defaulted Loans
Experts indicated that acting quickly may be critical among federal student loan borrowers at risk of a portion of their wages being seized. Although wage garnishment was paused during the COVID-19 pandemic in 2020, the U.S. Department of Education announced plans to resume seizing the wages, federal tax refunds, Social Security retirement and disability benefits of those who have defaulted on their loans.