Amidst the looming student loan changes, new data reflects that Americans with student loan debt are falling behind on payments and entering default more than ever before. Nearly 25% of all student loan borrowers are behind on their payments, with over 5 million already having entered default.
The Student Debt Crisis Center (SDCC) welcomes today’s announcement that the Department of Education will pause efforts to garnish wages and seize tax refunds for the estimated 5 million student loan borrowers who have defaulted on their federal student loans.
After more than 5 years, the Department of Education (ED) announced on December 23, 2025 its intent to resume administrative wage garnishment for Americans who have defaulted on their federal student loans.
Jan 7
Support Our Movement.
Our work is supported by individual contributions. Each dollar directly funds our education, outreach, and advocacy programs. Donations to SDCC are tax deductible to the full extent of the law.
