The Education Department announced plans to begin garnishing wages of federal student borrowers in default, sending notices to roughly 1,000 people the week of Jan. 7 and scaling up collections monthly thereafter. The move follows the end of pandemic-era payment pauses and a Trump administration shift back to active collection. Millions of borrowers are classified as in default—typically defined as 270 days past due—and will face renewed withholding of wages and other federal payments unless they resolve delinquencies or enter repayment plans. The administration says collections will follow statutory notice and opportunity-to-repay windows; borrower advocates warn of economic harm to low-income alumni and current students. For higher education institutions, renewed collection activity has immediate alumni-relations, enrollment-financial-aid, and reputational implications. Universities that monitor default rates for cohort-default metrics and eligibility for federal programs should prepare for potential increases in outreach needs and for heightened scrutiny from oversight bodies.