US Set to Garnish Wages for Student Debt Collection in 2026 [Yahoo! Finance]
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Source: Yahoo! Finance
Education Department said Tuesday, a long-promised move that threatens to hit some of the most economically-vulnerable households in the country. The first notices of wage garnishment will be sent the week of Jan. 7 to 1,000 borrowers who haven't made a payment in over a year. The number of borrowers targeted will increase each month, according to a department spokesperson who spoke on the condition of anonymity. Most Read from Bloomberg New York's Congestion Pricing Is Working. Five Charts Show How With Mamdani, the Humble Bus Gets Its Due As Zipcar Leaves London, Car-Share Boosters Are Looking for a New Ride ICE Plans Detention Expansion With Deal to Design 'Mega Centers' When It Comes to US Transportation, 2025 Had Some Wins, Too Total student debt has swelled to more than $1.6 trillion, and there are currently 5 million borrowers in default, according to government data. That number could balloon next year, with an additional 6 million borrowers in delinquency, acc
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