Trump admin will start garnishing the wages of thousands, including some in PA
Pennsylvania residents who are behind in their student loan payments may start seeing smaller paychecks beginning this year.
That’s because President Donald Trump’s administration has announced it will begin to garnish paychecks of student loan borrowers in default — meaning the borrower has not made payments on the debt in at least 270 days.
About 1,000 defaulted student loan borrowers will receive notices this week, with the number increasing every month, the U.S. Department of Education told NPR. This is the first time collections on student loans will be made since 2020 when the pandemic began.
So, what is wage garnishment? How many Pennsylvania residents have student debt? Here’s what to know.
What is wage garnishment?
The government can collect payments on defaulted student loans three different ways — withholding tax refunds, withholding federal payments and withholding money from the borrower’s paycheck, also called wage garnishment.
The companies that hold student loan debt can order employers to withhold up to 15% of the borrower’s paycheck to collect without taking the borrower to court. Notices must be sent out 30 days prior to the first wage garnishment. Following the notice, borrowers have the right to file for a hearing to contest the garnishment.
If the borrower believes withholding 15% of their paycheck could lead to financial hardship, if they object to the existence, amount of the enforceability or if the borrower has been employed for less than 12 months, they can file for a hearing. Requests for a hearing should be made within 30 days of receiving the garnishment notice in the mail.
Borrowers should contact their loan servicer to see how they can request a hearing, the Department of Education says. Hearing proceedings can be held in person in Atlanta, Chicago or San Francisco, over the phone or a decision can be made through documents submitted in the case. A decision on the hearing would be made within 60 days.
How many Pennsylvania residents have student loans?
According to the Education Data Initiative, Pennsylvanians hold $67.4 billion in student debt. There are more than 1.8 million borrowers living in Pennsylvania, with an average student debt of $36,120 per person.
More than 14% percent of state residents have student loan debt, with 54.9% of borrowers being younger 35. Data shows 24.4% of borrowers have between $20,000 and $40,000 in debt, while 2.17% have more than $200,000.
Cheyney University of Pennsylvania in Cheyney is the institute in Pennsylvania with the highest rate in students defaulting on their loans within two years of graduation, university site CollegeRaptor reports. Thomas Jefferson University is the school with the lowest rate of students defaulting.
Here are the five colleges with the highest two-year loan default rate:
- Cheyney University of Pennsylvania
- Lincoln University (Lincoln)
- Pittsburgh Technical College (Oakdale)
- Lackawanna College (Scranton)
- Harrisburg University of Science and Technology (Harrisburg)
CORRECTION: This article was updated Jan. 12 to correct a reporting error to the universities with the highest two-year rate of loan default.
This story was originally published January 10, 2026 at 7:00 AM.
