Thousands of Georgia residents with defaulted student loans may soon see their wages garnished as the U.S. Department of Education resumes collection efforts this week. The move comes after a pause on federal loan collections that began in March 2020.
According to the Georgia Budget and Policy Institute, nearly 2 million people in Georgia have student loan debt, amounting to billions of dollars owed statewide. This is part of a larger national trend, with about 44 million Americans carrying student debt totaling trillions of dollars.
Georgia ranks among the top states for both average student loan debt and delinquency risk. As a result, many borrowers in the state are at heightened risk for wage garnishment or other collection actions if they are in default or late-stage delinquency.
The Department of Education will begin sending out notices starting January 7. Under federal law, wage garnishments can allow up to 15% of a borrower’s disposable pay to be withheld from each paycheck without requiring a court order.
A report from LendingTree notes that defaults and serious delinquencies have increased across the country since payments resumed. Millions of borrowers nationwide are now either 90–180 days behind on payments or already in default. In Georgia, those with high balances and limited financial flexibility may be especially affected.
Borrowers still have options to avoid or stop wage garnishment, but these become more limited once a loan enters formal default status. Acting within the 30-day window after receiving a garnishment notice is critical.
Federal officials say they plan to pair renewed collection efforts with increased outreach and easier access to affordable repayment plans. “That includes new tools and plans that Georgia borrowers can use right now,” according to officials.
Despite these resources, experts warn that the surge in delinquencies combined with new collection actions could create additional financial strain for many Georgians struggling with student debt.
For those seeking assistance or more information about their options, contacting federal agencies promptly remains important.
