Wed Dec 24 13:20:00 UTC 2025: Okay, here’s a news article summarizing and rewriting the provided text:

Trump Administration to Resume Wage Garnishment for Defaulted Student Loan Borrowers in January

Washington D.C. – The Trump administration will reinstate wage garnishment for student loan borrowers in default starting in early January, the U.S. Department of Education confirmed to CNBC on Tuesday. This marks the end of the pandemic-era pause on collection activities.

Starting the week of January 7th, approximately 1,000 defaulted borrowers will begin receiving notices of administrative wage garnishment, with the number expected to increase in subsequent weeks. The government possesses broad powers to collect federal debts, including the ability to seize tax refunds, wages, and Social Security benefits.

The Education Department can garnish up to 15% of a borrower’s after-tax income to repay the debt. However, federal law mandates that borrowers must retain at least $217.50 per week, calculated as 30 times the federal minimum hourly wage.

“This resumption of wage garnishment comes at a particularly difficult time for many borrowers,” said Mark Kantrowitz, a higher education expert. “Borrowers are already grappling with a fragile job market, constant changes to student aid, and recent difficulties in accessing relief programs.”

Currently, over 5 million student loan borrowers are in default. The Education Department projects that this number could rise to nearly 10 million in the near future. With over 42 million Americans holding student loan debt totaling more than $1.6 trillion, the issue has significant national implications.

Consumer advocates are urging borrowers facing default to contact the Department of Education’s Default Resolution Group and explore options such as loan rehabilitation to avoid wage garnishment.

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