Veterinary Professionals at Risk as Student Loan Defaults Rise: Wage Garnishment Looms for Millions
As federal student loan protections expire, nearly two million borrowers may face wage garnishment beginning this summer, according to a new report from TransUnion. The warning comes as nearly six million borrowers are now more than 90 days delinquent, up significantly from earlier this year.
For veterinary professionals—many of whom graduate with student loan debt exceeding $150,000—the risk of default is especially concerning. Early-career veterinarians, veterinary technicians, and students in loan repayment programs are among those who may experience financial strain or income loss as enforcement resumes.
End of Pandemic-Era Protections
During the COVID-19 pandemic, wage garnishment and aggressive debt collection for federal student loans were suspended. Those protections ended in October 2023, with a 12-month grace period known as the "on-ramp" for missed payments. That period expired in June 2025, and borrowers now face traditional consequences for nonpayment—including garnished wages and tax refund offsets.
According to TransUnion, around one-third of the six million severely delinquent borrowers could fall into default in July, triggering automatic payroll deductions.
Veterinary Field Hit Hard by Loan Burdens
Veterinary medicine is one of the most debt-intensive professions relative to starting salary. The average veterinary student loan debt is over $180,000, while the median starting salary hovers around $90,000.
For veterinary technicians, the situation is more precarious: salaries are lower, and access to income-driven repayment plans may be limited, especially for those with private loans.
Without continued support, many in the field may:
Struggle to meet monthly payment obligations
Face credit damage from default
Be unable to qualify for mortgages, practice loans, or financing
Drop out of loan forgiveness programs due to noncompliance
Potential Solutions and Program Misalignment
Some veterinary borrowers qualify for Public Service Loan Forgiveness (PSLF) if they work in nonprofit or government settings, such as animal shelters, academic institutions, or USDA roles. However, loan servicer errors, missed paperwork, and tight eligibility criteria continue to hinder access to relief.
Additionally, the Veterinary Medicine Loan Repayment Program (VMLRP) offers repayment for veterinarians working in shortage areas—but the scale is small, and most recipients are still subject to federal income tax on the forgiven amount, unlike human medical professionals.
Without broader reform, many veterinary professionals—particularly early in their careers—remain at risk.
Call to Action
Veterinary associations and student advocacy groups are renewing calls for:
Expansion of tax-exempt loan repayment programs for veterinary professionals
Targeted relief for high-debt, moderate-income careers
Improved access to income-driven repayment plans tailored to veterinary salaries
Until such measures are enacted, the financial pressure on the profession—already facing high attrition and burnout—could intensify.
Frequently Asked Questions (FAQs)
Why are student loan borrowers at risk of wage garnishment in 2025?
The "on-ramp" period that prevented penalties for missed federal student loan payments ended in June 2025. Borrowers who are more than 270 days delinquent may now be sent to collections, triggering wage garnishment.
How does this affect veterinary professionals?
Veterinary professionals often graduate with six-figure debt and may struggle to repay loans on modest starting salaries. Without income-driven repayment plans or loan forgiveness, default risk increases—potentially leading to wage garnishment.
Are there loan forgiveness programs for veterinarians?
Yes. The Veterinary Medicine Loan Repayment Program (VMLRP) and Public Service Loan Forgiveness (PSLF)are two primary programs. However, PSLF eligibility is limited to certain nonprofit/government employers, and VMLRP repayments are currently taxable, reducing their value.
What happens if a veterinary borrower defaults?
Defaulting on student loans can result in:
Wage garnishment of up to 15% of disposable income
Damage to credit scores
Loss of eligibility for loan forgiveness programs
Tax refund offsets
What can veterinary professionals do to avoid default?
Enroll in income-driven repayment (IDR) plans
Explore consolidation or deferment options if eligible
Contact loan servicers to restructure payments
Apply for VMLRP or PSLF if working in a qualifying role
