Starting January, student loan leniency officially ends as the Trump administration resumes wage garnishment for defaulted federal borrowers after nearly six years. Notices will be sent to 1,000 borrowers, with plans to target 5 million. Government can seize up to 15% of income without court order, creating financial crisis for many. Private lenders like SoFi and SLM Corp. stand to benefit. Increased demand for refinancing as borrowers seek to avoid seizure and structured repayment plans. Private lenders like SoFi may see surge in volume as borrowers try to escape government collection reach. Student loan landscape shifting from relief to recovery, prompting many to consider exiting federal system to protect their paycheck from restart.

Read more at Yahoo Finance: Trump Restarts Student Loan Seizures