Dave Bondy's Keeping it Real Newsletter

Dave Bondy's Keeping it Real Newsletter

Millions Could See Student Loan Payments Pulled Directly From Their Paychecks

Millions of borrowers in default could soon see money taken directly out of their paychecks as federal collections resume.

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Dave Bondy
Dec 23, 2025
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The federal government is about to restart wage garnishment for people who are behind on their federal student loans. According to CNBC, the Department of Education says it will begin notifying borrowers in default that their wages can once again be taken directly from their paychecks.

This is the first time wage garnishment has been used since student l…

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