U.S. Education Secretary Linda McMahon attends a press briefing with White House Press Secretary Karoline Leavitt (not pictured) at the White House in Washington, D.C., U.S., November 20, 2025.
Evelyn Hockstein | Reuters
The Education Department announced on Friday that it will delay the implementation of wage garnishment and other involuntary collection efforts affecting defaulted student loan borrowers.
The department said the delay affects involuntary collections on federal student loans including through wage garnishments and the Treasury Offset Program, which is used to seize some or all of borrowers’ payments from the government including tax refunds, Social Security benefits.
“The temporary delay will enable the Department to implement major student loan repayment reforms under the Working Families Tax Cuts Act…to give borrowers more options to repay their loans,” the department said in the announcement.
The Trump administration announced in April that it would resume collection activity on student loans starting in May. Before that announcement, collections had been paused since 2020 in response to the Covid-19 pandemic. In June, the department paused its plan to garnish Social Security payments.
Then in December, the department confirmed around 1,000 borrowers would receive notification of intent to garnish wages during the week of Jan. 7, with more notices to follow.
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