Summer of Garnishments and Rise of Underclass

Timeline: Who Gets Garnished and Who Doesn't, Legal and Financial Strategies to Stop Garnishment.

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More than 5.8 million student loan borrowers are now 90+ days delinquent, and millions are on the brink of default as federal collections resume in 2025. Starting this summer, up to 15% of borrowers’ wages could be garnished without a court order, compounding financial pressure as credit scores plunge, BNPL rejections rise, and proposed SNAP and Medicaid cuts threaten basic safety nets. Based on data from TransUnion, the New York Fed, and current federal policy, this report unpacks the mechanics, consequences, and legal options in what’s shaping up to be the largest wage seizure wave in U.S. education finance history.