NEW YORK — Millions of student borrowers could begin having their wages garnished as soon as this summer, according to estimates from credit bureau TransUnion.

The company predicts that by August roughly 3 million borrowers could move into default, meaning they're 270 days past due on payments. At that point , loan holders are at risk of having 15% of their pay docked by the government, with the money going toward the outstanding debt. There has been no clear indication of when wage garnishment will start.

After the pandemic-era pause on student loan payments ended in May, borrowers have had to reassess the state of their loans and budgets. According to TransUnion, another 2 million borrowers are on course to default in September.

A Biden-administration grace period, during which late

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