The US Department Of Education is a federal agency that sets policy, administers and coordinate education assistance by managing financial aid, collecting data, researching improvements and overseeing civil rights. The Department Of Education is currently being led by the Secretary Of Education Linda E McMahon. McMahon was sworn in as the thirteenth United States Secretary of education. Well known as the CEO of the World Wrestling Entertainment (WWE) With a degree in French and a desire to bring her focus on education and opportunity to the national stage, today student borrowers whom fell into default during the pandemic era pause, will now see what may be viewed as a consequence, hit their paychecks. The Education Department last year announced student borrows in default may see up to fifteen percent of their wags garnished.

Federal wage garnishments Has restarted after a period of five years and marks the next stage of the post pandemic student loan reset and also keeping in mind that you would have to be approximately two hundred and seventy days of non payment. As of twenty twenty five, roughly about Five point five to seven million are in default. Of those numbers we estimate about ten million could be in default and the individuals most affected by these new changes would be borrowers of color, individuals that never completed their studies, low income individuals and older borrowers. The negative impact associated with such a  judgement include income tax and wage garnishments, significant damage to credit scores and loss of eligibility for future student federal aid. Those in default seeking to avoided wage garnishments have three options.

•  Loan rehabilitation - Involves nine affordable payments over a ten month period.
• Loan consolidation – This involves combining the outstanding debt into a new one under an income driven re-payment plan
•  Or full repayment of total balance and interest in one lump some

When a loan is rehabilitated it is no longer considered to be in a default status. Once this happens, borrowers will regain eligibility available on the loan such as default forbearance, deferments, a choice of repayment plans and loan forgiveness. Under the Big beautiful bill, it increased the number of times a borrower can rehabilitate from one to two.

Sources: Hal Bundrick, 8 January 2026 " Student loan borrowers could face wage garnishment soon. Here's what you need to know" Yahoo finance