Trump Administration Postpones Wage Garnishment for Defaulted Student Loans

The Trump administration has delayed plans to resume wage garnishments and tax refund collections from federal student loan borrowers in default, allowing time for the Education Department to finalize new repayment options. Secretary of Education Linda McMahon stated that the pause aims to improve the efficiency and fairness of collection efforts. With over 5 million Americans in default, student loan advocates welcomed the decision, citing concerns about exacerbating borrowers’ debt. The department is set to introduce new repayment plans on July 1, following a pandemic-related pause on collections.

Want More Context? 🔎