Federal student loan borrowers face wage garnishment notices

CHATTANOOGA, Tenn. (WDEF) – The Trump administration has begun sending wage garnishment notices to borrowers who have defaulted on their federal student loans.

The first wave of roughly one thousand letters has already been sent, with more notices expected in the coming weeks.

Many borrowers may not realize the garnishment process has started or understand what steps to take once a notice arrives.

A college finance expert says borrowers should be prepared for a significant financial impact.

Jennifer Finetti, a college finance expert, says the federal government has the authority to withhold a portion of a borrower’s income.

“The federal government is able to garnish up to fifteen percent of your post tax wages,” Finetti said.

She added that the consequences could be severe for many households.

“For a lot of families that live paycheck to paycheck, as most of us do, this is going to present a huge challenge,” Finetti said.

Financial experts urge anyone who receives a wage garnishment notice to respond immediately and seek guidance before garnishments begin.