Federal Student Loan Wage Garnishment Resumes: Starting January 7, 2026, the U.S. Department of Education will resume mandatory wage garnishment for defaulted student loans. After a five-year pandemic pause, the government is targeting 5.3 million delinquent accounts. Initial notices will hit 1,000 workers this month, with monthly expansions continuing through 2026. Authorities can seize 15% of disposable income without a court order. Borrowers must act during the 30-day warning period to prevent automatic paycheck deductions.