Millions of Student Loan Borrowers in Default Face Wage Garnishment and Tax Refund Seizure

Millions of student loan borrowers who are currently in default could face severe collection measures, including wage garnishment and the seizure of tax refunds, as early as next year. More than 9 million borrowers have defaulted on a collective $234 billion in loans since pandemic forbearance expired last year, with many more late on payments. This reckoning follows repeated pauses in collections and communication challenges regarding the resumption of payments.