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Wage garnishment set to resume for many Texans as student loan payments restart
Federal student loan wage garnishments will resume in January, affecting many Texans and prompting borrowers to review options and financial plans.
Many Texans will begin seeing wage garnishment from employers in early January as federal student loan repayment collections resume after a long pandemic era pause. The garnishment applies to borrowers who have defaulted on their federal loans, and employers are required to withhold a portion of wages to satisfy overdue balances. Financial counsellors say affected workers should check their loan status, contact servicers, and understand exemptions or hardship options.