Restart of Debt Collection and
Wage Garnishment on Student Loan Debt In Default

Critical Policy Changes Every Employer Should Understand

Federal debt collection on student loans is restarting—and it will impact the workforce.

Beginning May 5, 2025, the government will resume debt collection on student loans through tax refunds intercepts and the withholding of Social Security and other federal benefits benefits. Wage garnishment orders to employers will follow.

With over 12 million borrowers in delinquency or default, employers must prepare now for what's ahead.

What’s Inside This Brief:

• Timeline for collections, credit reporting, and wage garnishment
• Student loan wage garnishment mechanics for employers 
  
• Steps employers can take to reduce workforce disruption
  

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