The U.S. Department of Education is vowing to intensify its collection of unpaid student loans in 2026.
On Jan. 7, the agency began issuing notices to borrowers in default. They will have 30 days to set up a payment plan before the federal government seizes up to 15% of their income until the debt is paid in full.
Watch the video below for more information on how to know if you’re in default and how to avoid wage garnishment.
RELATED: The Student Loan Crisis Is About to Get Worse
Student loan wage garnishment is poised to hit Black borrowers the hardest. Black college students are more likely to take out student loans. And four years after graduation, the average Black graduate owes almost $25,000 more than a white graduate, according to the Brookings Institution.
Owing more loans that are compounded by interest makes it more difficult to pay them off, thereby reinforcing the racial wealth gap, argue Brookings analysts.
If you need help paying off your student loans, including consolidation, the Department of Education advises contacting your loan servicer or exploring the free loan repayment simulator on studentaid.gov.