FRESNO, Calif. (KFSN) — A break for borrowers as the White House pushed pause on plans to garnish the wages of federal loan recipients in default.<\/p>\n
The Department of Education has decided they need a little bit more time to resolve issues with the student loan system, and once they do that, wage garnishments will begin,” says Jennifer Finetti with ScholarshipOwl.<\/p>\n
Millions of borrowers are considered in default, meaning they are at least 270 days past due on their payments.<\/p>\n
“Out of your net paycheck, you can potentially lose up to 15 percent more of that net amount to go toward those wage garnishments,” Finetti said.<\/p>\n
Finetti says while it’s unclear when collection on defaulted debt will resume, there are still steps borrowers can take to get their accounts in good standing.<\/p>\n
“Contact your loan servicer and find the status of your loans,” she said.<\/p>\n
Repayment options are likely available to get back on track.<\/p>\n
“Go through the rehabilitation process, making nine on-time payments for nine months in a row on your student loan,” Finetti said. “The amount of your payment would be something you work out with your loan servicer.”<\/p>\n
Finetti says a faster process could be to bring your debt together and tackle it as one lump sum.<\/p>\n
‘You would be able to agree to a new payment with a consolidated loan and then be required to make three on-time payments in a loan,” she said.<\/p>\n
Various options come with pros and cons, so it’s important to do your homework to determine which avenue is best for you.<\/p>\n
“This is not a time to do nothing,” Finetti said. “This is almost a gift. Now, there’s a bit of time to figure out how to get your finances in order and get yourself into a better place.”<\/p>\n
For news updates, follow Vanessa Vasconcelos on Facebook<\/a>, X<\/a> and Instagram<\/a>.<\/p>\n Copyright \u00a9 2026 KFSN-TV. All Rights Reserved.<\/p>\n
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