The Trump administration says wage garnishment for defaulted federal student loans will begin in January, ending a pandemic-era pause.

The Education Department signaled earlier this year that it would move to resume wage garnishment, among other forms of involuntary collection, for those in default.

The new agreement places tight restrictions on the department’s future ability to pass student loan forgiveness.

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About 5.5 million borrowers are currently in default. They haven't risked wage garnishment since the beginning of the pandemic, when policymakers paused the practice.

Starting the week of Jan. 7, the Education Department will begin sending notices about paycheck deductions to about 1,000 of five million borrowers in default.

Many borrowers are facing tough choices between their student loan payments and other essentials. But skipping your payment could make your situation worse.

Student loans are back in repayment, and starting in 2026, that also means that collection activity has resumed on student loan debt. Could your student loans cause you to see your tax refund garnished?