Marketplace All-in-One An unwelcome surprise for some student loan borrowers
Dec 31, 2025
Samantha Fields, a consumer finance journalist, discusses the alarming return of wage garnishments for federal student loan defaults, impacting millions who may be caught off guard. Stephen Roach, a numismatist, shares insights on the penny's storied history, from its origin to its recent production halt. The conversation touches on how rising copper prices influenced the penny's size and composition, and the surprising auction value of the last pennies, highlighting a historical moment in U.S. currency.
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Surprise Garnishments Returning
- Many borrowers in default may be unaware the COVID payment pause ended and face 15% wage garnishments soon.
- This surprise could push the roughly 5 million currently in default higher and create serious hardship.
Act Quickly To Avoid Garnishment
- If you're in default, explore options to rehabilitate loans or get them back in good standing to avoid garnishment.
- Act quickly because lost wages and the end of some income-based plan benefits will increase financial strain.
Notifications Are Often Missed
- Many borrowers may not receive notices because they moved or didn't update addresses, increasing the chance of surprise garnishments.
- Concurrent policy changes like loss of affordable income-based plans and ACA subsidy expirations will amplify hardship.