The Economic Times News

Millions paycheck could shrink January 7 as government debt crackdown is about to hit workers

Millions of Americans face paycheck cuts starting January 7, 2026, as the federal government restarts student loan wage garnishments. Up to 15% of after-tax income can be withheld for defaulted loans. Fresh Start grace periods ended in September 2025. New One Big Beautiful Bill rules limit borrowing and deferment options.