Federal government warns millions of wage garnishment over defaulted student loans

Name: Federal government warns millions of wage garnishment over defaulted student loans
Uploaded: 2026-01-09T17:51:00-0500
Duration: 50 s
Description: The federal government is warning millions of Americans who have defaulted on their student loans that their wages could soon be garnished. More than 45 million people hold student debt totaling nearly $1.7 trillion, and new notices from the Department of Education outline that up to 15% of a borrower’s paycheck — and even part of their tax refund — may be taken to recover unpaid balances.

The federal government is warning millions of Americans who have defaulted on their student loans that their wages could soon be garnished. More than 45 million people hold student debt totaling nearly $1.7 trillion, and new notices from the Department of Education outline that up to 15% of a borrower’s paycheck — and even part of their tax refund — may be taken to recover unpaid balances.