Preparing for 2026—What You Need to Know Right Now about Student Loans

What’s the fastest way to stop wage garnishment?

For federal loans, wage garnishment is tied to default status and can resume as collections restart in 2026.

In general, borrowers stop (or avoid) garnishment by getting loans back into good standing. You have the right to appeal based on meeting eligible criteria, correcting the default through a formal path like Rehabilitation, or arranging a payment plan like an income driven plan or reasonable and affordable payments.

Can they really take my tax refund?

Yes—if your federal student loans are in default, the government can intercept your federal refund through the Treasury Offset Program.

If you’re at risk of default (or already in it), treat January–April as a high-stakes window: verify your status, start your default-resolution path, and don’t assume it will “work itself out.”

If you currently in default and are unsure of if you are on the tax offset list call 800-304-3107 and use the automated system to find out if you are at risk. If you are married and filing jointly, make sure you complete IRS form 8379, Injured Spouse Claim and Allocation, before you file your return. You may wish to seek advice from a tax expert.

What is RAP and when should I care?

RAP (Repayment Assistance Plan) is a new income-driven plan described in reporting as part of the 2026 repayment restructuring, expected to be available July 1, 2026.

Who should pay attention:

• Borrowers leaving SAVE who need a sustainable long-term plan

• Borrowers who want the lowest manageable payment with clarity about long-term cost

I filed for an Income-Driven Repayment (IDR) plan weeks ago and still haven’t heard anything. What’s going on?

You are not alone. Processing delays for Income-Driven Repayment applications are ongoing, and many borrowers are experiencing longer-than-usual wait times for approvals.

Several factors are contributing to these delays, including:

• Extremely high application volume as borrowers transition off SAVE or reapply for IDR plans

• Operational backlogs at loan servicers

• Ongoing litigation and policy changes affecting how applications are reviewed and processed

In many cases, applications are pending, not denied, and simply waiting in a queue.

What you should know right now:

• Submitting an IDR application shows intent to repay and is an important first step

• While your application is pending, your servicer may place you in a temporary administrative forbearance

• Interest may continue to accrue during this time, even if payments are paused

What you should do next:

• Confirm that your application was successfully submitted and received by your servicer

• Monitor your servicer account and email for requests for additional documentation

• Avoid submitting multiple duplicate applications unless instructed, as this can slow processing further