Student Loan Wage Garnishment Skyrockets Under Trump-Era Policy – What Borrowers Must Know

Thousands of Americans are waking up to alarming deductions in their paychecks as federal student loan wage garnishments surge. A controversial Trump administration rule, still in effect, has made it easier for the government to seize wages without a court order—leaving many borrowers scrambling.

Why Is Wage Garnishment Spiking Now?

The U.S. Department of Education has ramped up collections efforts after pandemic-era pauses expired. Unlike private lenders, federal loan holders don’t need to sue to garnish wages—they can take up to 15% of disposable earnings directly from paychecks.

• No Court Involvement Needed: Unlike other debts, federal student loans bypass legal proceedings.
• Lower Threshold for Default: Loans enter default after just 270 days of non-payment.
• Fewer Protections: Borrowers receive only 30 days' notice before garnishment begins.

How to Fight Back Against Garnishment

If you're facing wage seizures, experts recommend these steps:

1. Request a Hearing: You have 30 days to appeal the garnishment notice.
2. Rehabilitate Your Loan: Making nine on-time payments can remove default status.
3. Explore Income-Driven Plans: Payments could drop to $0 for low earners.

Controversial Policy Lingers Despite Biden’s Promises

While the Biden administration paused student loan payments during COVID-19, it hasn’t reversed the Trump-era garnishment rules. Advocates argue this contradicts White House rhetoric about easing borrower burdens.

What Do You Think?

• Should wage garnishment for student loans require a court order like other debts?
• Is 15% of disposable income too much to take from struggling borrowers?
• Why hasn’t the Biden administration stopped this policy if they oppose harsh collections?
• Would you support a full garnishment ban for federal student loans?