Feds will soon garnish wages for thousands of Washington residents. Here’s why

Washington residents who haven’t kept up with their student loans could see a major change starting in January.

The Trump administration is bringing back wage garnishments for borrowers in default, which means part of your paycheck can be taken before it reaches your hands. Garnishments were paused during the coronavirus pandemic.

According to the Education Data Initiative, Washington state residents owe $29 billion in federal student loans across 790,000 borrowers.

Washington was among the 20 U.S. states where student loan delinquency was increasing the most in 2025, according to a recent WalletHub study.

About 0.59% of borrowers in Washington — about 4,660 people — had student loans in delinquency during the first quarter of 2025, WalletHub found.

Borrowers will get a notice before anything is withheld, but the timeline to respond is short.

How does the wage garnishment process work?

A federal student loan goes into default after nine months with no payment.

Once that happens, the entire loan becomes due immediately, and the government has the legal right to ask your employer to withhold part of your paycheck.

Before anything is taken out, the Department of Education must send a written notice at least 30 days in advance. That letter will explain the debt, the amount it plans to withhold and how you can respond.

Employers can withhold up to 15% of a borrower’s disposable income, according to federal rules.

Notices were expected to go out starting the week of Jan. 7, so borrowers in default may hear something soon.

How educated are people across Washington state?

College completion plays a major role in whether borrowers are able to repay their loans.

Across Washington state, about 39% of residents had a bachelor’s degree or higher in 2022, according to the U.S. Census Bureau and Washington State Office of Financial Management.

That’s an increase of 103.3% from 2000, when 27.7% of Washington residents had a bachelor’s degree or higher, the state agency said.

Borrowers who leave college without finishing often struggle the most with loan repayments.

According to a 2016 federal report, college dropouts who took out student loans are three times more likely to default than their peers who graduate.

Which Washington colleges have highest loan default rates?

Grays Harbor College in Aberdeen had the highest student loan default rate of any college in Washington state — with 21.4% of graduates defaulting on their student loans within two years of leaving school, according to federal cohort data summarized by CollegeRaptor.

Spokane Community College had the second-highest student loan default rate in the Evergreen State, about 19.5%.

Four-year universities tended to have lower rates, CollegeRaptor found, but defaults still happen.

Heritage University in Toppenish had a student loan default rate of 12.3%, according to CollegeRaptor.

Seattle Pacific University had the lowest student loan default rate at 0.8%, CollegeRaptor said.

What should I do if I’m at risk of wage garnishment?

If you receive a garnishment notice, don’t ignore it. That notice is your chance to dispute the debt or get into a plan that stops the garnishment before it begins.

Borrowers can ask for a hearing, request their loan records, or start a voluntary repayment plan with their servicer.

The government also offers two ways to get a loan out of default.

One option is loan rehabilitation, which lets you make a series of agreed upon payments to restore the loan to good standing. Another option is loan consolidation, which rolls your overdue loan into a new one that’s considered current.

Either path can stop wage withholding once you begin the process.

Where can I get help if I’m struggling with loans?

Borrowers can log into StudentAid.gov to check their loan status and see repayment or consolidation options.

The Washington Student Achievement Council’s student loan advocate can answer questions and provide assistance in understanding borrower information.

If you’re unsure whether you’re in default, the safest step is to contact your loan servicer as soon as possible.

This story was originally published January 8, 2026 at 12:32 PM.