Name: Federal government may take up to 15% of some Coloradans paychecks
Uploaded: 2026-01-07T20:07:08.936Z
Duration: 2 min 50 s
Description: Starting this week, some Colorado student loan borrowers in default could receive notices their wages may be garnished.

Starting this week, some Colorado student loan borrowers in default could receive notices their wages may be garnished.

Colorado

The U.S. Department of Education is resuming wage garnishment for federal student loan borrowers who are at least nine months past due, with initial notices being sent to 1,000 borrowers this week and more to follow each month. Coloradans, who have some of the highest average student loan balances in the country, are among those affected by this policy.

Borrowers who receive a notice have 30 days to make payment arrangements or challenge the default before up to 15% of their wages can be garnished. Employers are legally required to comply with garnishment orders, and there is no statute of limitations on federal student loan debt collection, meaning actions can be taken for debts that are years old.

Federal government may take up to 15% of some Coloradans' paychecks

If you have federal student loans, you may get a notice starting this week that your wages could be garnished. It is a move by the U.S. Department of Education that could impact billions who are nine months or more past you. Yeah, including right here in Colorado. Our Lauren Lennon is joining us live from the from the newsroom. Lauren, you've been covering this all morning and I was actually looking at some federal data that shows Coloradans have some of the highest average balances in the country when it comes to these student loans. Yeah, and we know this is going to impact millions of people across the country eventually. This week, notices will go out to a thousand borrowers who are in default and that number will increase each month. So what exactly happens if you do receive one? Well, from the time that you get a notice to the time your wages are actually garnished, you'll have 30 days to make payment arrangements to get yourself out of default. Once those 30 days are up, the government can take up to 15 percent of your paycheck. I spoke with Michael Winn, the executive director of financial aid and scholarships at MSU Denver. He says borrowers agree to this when they take out loans, when signing master promissory notes and receiving this notice. Well, it's part of your rights as a borrower. This was always in existence, but during because there was the pandemic period where there was this pause. Now this is starting to circulate as a concern again because the Department of Education is wanting the borrowers to act on the responsibility that they signed upon. Because this is taken from the employer. This means that this is money that gets taken out before you ever have a chance to pay your rent, to buy your food and take care of other really basic necessities. And so for a lot of families, this is going to have a devastating consequence. Now during that 30 days from when you get this notice, you can also challenge the default and request a hearing. You, who you just heard from, says one reason for challenging could be because of financial hardship. Now, the most important step that I heard from my conversations that you can take are now before you even receive a notice, making sure you know your status. And if you do have any more questions and need to check your status, you can visit StudentAid.gov. Dan? Yeah, a lot of good things that people need to keep in mind. Lauren, thank you so much. We also wanted to look into this a bit further, and we found that businesses are legally required to comply with this as well. Now unlike most debt collections, federal student loan garnishment does not require a court order that is needed by private student loan lenders. Now once an employer gets a garnishment order, they need to take immediate action by completing the paperwork and notifying the employee. The withholdings then start in the next available pay period. They also must continue the deductions until they've received notification from the U.S. Department of Education. Now if an employer fails to comply, the business could be held viable for the amount of money that was failed to be paid, plus possible penalties and fees that are tacked on. There is also no statute of limitations on collecting federal student loan debts. That means you could face collection actions for debts that are years old.

President Trump weighed in on the deadly shooting involving an ICE officer in Minneapolis, Minnesota, on Wednesday. CBS News' Willie James Inman reports.

Minneapolis

Trump claims woman shot by ICE in Minneapolis was “very disorderly”

President Trump plans to meet with Colombian President Gustavo Petro after Mr. Trump issued threats following the U.S. operation in Venezuela that led to the capture of Nicolás Maduro. CBS News' Lilia Luciano reports from Bogotá.

Washington

Trump to meet Colombia’s Petro after tensions over Venezuela operation

The United Kingdom aided the U.S. in an operation to seize a sanctioned oil tanker linked to Venezuela in the North Atlantic. CBS News' Ramy Inocencio reports.

UK helped the U.S. seize an oil tanker linked to Venezuela

U.S. forces on Wednesday seized two oil tankers, one in the North Atlantic and the other in the Caribbean, as part of the Trump administration's blockade of Venezuela's oil exports. Secretary of State Marco Rubio said the U.S. will take between 30 million and 50 million barrels of oil and sell it in the marketplace.

U.S. to control money from Venezuela oil sales after tanker seizures

Nick Reiner was set to be arraigned on murder charges on Wednesday in the killing of his parents Rob and Michele Reiner. But his defense attorney, Alan Jackson, told the judge he could no longer represent the 32-year-old. After the hearing, Jackson said he couldn't say why he withdrew for legal reasons, but added, "Nick Reiner is not guilty of murder."

Los Angeles

Nick Reiner's lawyer withdraws from case, says Reiner 'is not guilty'

NASA is considering a rare early return of its crew from the International Space Station over an unspecified medical issue involving one of the astronauts, after canceling a planned spacewalk that had been scheduled for Thursday (January 8), the agency said.

NASA mulls early ISS crew return due to astronaut medical issue

Washington says it has intercepted two Venezuela-linked oil tankers in the Atlantic as part of President Trump’s hardline effort to control oil movements across the Americas, claiming the vessels were part of a so-called shadow fleet used to ship sanctioned crude from Venezuela and Iran.

UK helped U.S. military to seize sentenced oil tanker on way to Russia

Minneapolis erupts in protests after a woman is shot by a federal agent – Video of the incident sparks outrage nationwide.

ICE shoots woman: Incident sparks protests across the U.S.

President Masoud Pezeshkian has urged security forces to show restraint, distinguishing peaceful protesters from armed rioters. However, rights group Iran Human Rights says at least 27 protesters have been killed, while Iranian media report 15 deaths, including members of the security forces.

Tehran

Iran police officer killed as cost-of-living protests enter 12th day

The decision comes as Trump approaches the first anniversary of his second term. Since returning to office, he has already moved to exit the World Health Organization, the Paris climate agreement, and UNESCO, while cutting funding to several UN bodies.

Trump orders U.S. withdrawal from 66 international organisations

Iran's army chief threatened pre-emptive military action on Wednesday over the "rhetoric" targeting the country, thought to be in reference to threats made by US President Donald Trump last week, warning that if Tehran "violently kills peaceful protesters," Washington would "come to their rescue."

Iran army chief threatens pre-emptive attack after Trump threats

U.S. forces have boarded a Venezuela-linked sanctioned oil tanker in the North Atlantic after pursuing it for weeks. The U.S. military also announced the seizure of a sanctioned tanker ship in the Caribbean Sea, the second vessel taken by American forces on Wednesday.

Venezuela Strikes

U.S. seizes two more sanctioned oil tankers with links to Venezuela

A woman was fatally shot by an ICE officer Wednesday morning in Minneapolis, the Department of Homeland Security says. CBS News' Nicole Sganga reports from the scene.

Protesters gather after ICE shoots and kills woman in Minneapolis

The U.S. seized a Russian-flagged oil tanker that was being shadowed by a Russian submarine on Wednesday (Jan. 7), after a more than two-week-long pursuit across the Atlantic as part of a U.S. "blockade" of Venezuelan oil exports.

U.S. seizes Venezuela-linked oil tanker after weeks-long pursuit

Nick Reiner, the son of Rob and Michele Reiner, is set to be arraigned in the killing of his parents, Rob Reiner and Michele Singer Reiner. It comes as details emerge about his time in custody and how his mental health history could play a role in his case.

Nick Reiner due in court on murder charges

Flights across France and Belgium and Eurostar train services have been severely disrupted by the winter weather.

Paris

Eurostar trains and hundreds of flights cancelled amid heavy snowfall

President Masoud Pezeshkian on Wednesday urged security forces to distinguish between what he called rioters and protesters, urging them not to target peaceful demonstrators.

Iran's President urges security forces not to target protesters

In Iran, protests that broke out on December 28th over the soaring cost of living look set to continue. Security forces fired tear gas at demonstrators in Tehran's Grand Bazaar on January 6: without giving numbers, Iran's IRNA news agency said 'some' people were arrested.

Death toll rises as Iran's security forces clash with protesters

Members of the North Atlantic Treaty Organization (NATO) are reacting to the Trump administration's comments on a potential Greenland takeover from Denmark.

Nuuk

European leaders blast Trump over Greenland takeover discussions

Donald Trump says Venezuela will hand over as much as 50 million barrels of oil and he will control the profits.

Trump says Venezuela will turn over 30-50 million barrels of oil

Britain and France have said they could send troops to Ukraine if a ceasefire is agreed. The pledge came at a Paris meeting of 30 nations, including the US, on security guarantees demanded by Kyiv before any peace deal.

London

Ukraine Invasion

UK, France ready to deploy troops in Ukraine after ceasefire

Colombian President Gustavo Petro said he would “take up arms” in the face of threats issued by US President Donald Trump.

Bogotá

Colombia vows to defend its sovereignty amid Trump’s military threats

Israeli forces storm Birzeit University in the occupied West Bank soon after students begin a sit-in in solidarity with jailed Palestinians.

Jerusalem

Middle East Conflict

Israeli school assault wounds dozens of Palestinians in West Bank raid

The White House says U.S. President Donald Trump and his team are considering a range of options in efforts to acquire Greenland as the ouster of Venezuelan leader Nicolás Maduro continues to reverberate in the Western Hemisphere.

Trump sees acquiring Greenland as a national security priority

The United States for the first time backed a broad coalition of Ukraine's allies in vowing to provide security guarantees that leaders said would include binding commitments to support the country if it is attacked by Russia again.

U.S. backs security guarantees for Ukraine at summit of Kyiv's allies

South African President Cyril Ramaphosa has expressed deep concern over recent U.S. military action in Venezuela, calling for the immediate release of Venezuelan President Nicolás Maduro and his wife.

Soweto

Ramaphosa urges UN action after U.S. capture of Maduro

At least 25 people have been killed in Iran during the first nine days of protests that started in the bazaar of Tehran over the plunging value of the currency and soaring inflation, according to rights groups. This video contains graphic images.

Rights groups say at least 25 dead in Iran protests

The administration of President Donald Trump is planning to meet with executives from U.S. oil companies later this week to discuss boosting Venezuelan oil production after U.S. forces ousted its leader Nicolas Maduro, according to a source familiar with the matter.

Trump administration sets meetings with oil firms on Venezuela: source

Uncertainty in Venezuela has crossed into neighboring Colombia, especially after U.S. President Donald Trump suggested Colombian President Gustavo Petro could face U.S. action following the capture of Nicolás Maduro.

Tension rises in Colombia after Maduro’s capture

Nicolas Maduro appeared in a US courtroom on January 5, 2026. He pleaded "Not Guilty" to drug trafficking and other charges, insisting he is still Venezuela's president. Maduro's kidnapping is being justified by the Trump administration as a "surgical law enforcement operation", but what proof is the case resting on?

Breakdown