The U.S. Education Department has delayed plans to seize tax refunds and garnish wages over student loans that are in collection.
Jan. 16 The U.S. Education Department has delayed plans to seize tax refunds and garnish wages over student loans that are in collection, it announced on Friday.
While the delay is in effect, the department will work to revise student loan repayment regulations in accordance with the One Big Beautiful Bill Act.
“The Trump Administration is committed to helping student and parent borrowers resume regular, on-time repayment with more clear and affordable options, which will support a stronger financial future for borrowers and enhance the long-term health of the federal student loan portfolio”, said Nicholas Kent, under secretary of education.
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USA — Financial Education Department delays garnishment on defaulted student debt