2026: The restart of garnishing wages from student loan borrowers in default. It can be up to 15% of your take-home pay.

“You actually aren’t considered in default and at risk of wage garnishment unless you’re over 270 days past due on the loan. And if you are at risk for garnishment, the loan won’t be with your servicer anymore. It won’t be held by the names you may have recognized in the past. It will be held by the Department of Education, their collections unit,” said Betsy Mayotte, President of the Institute of Student Loan Advisors.