The Times of India

Trump administration delays wage garnishment for defaulted student loan borrowers as DOE finalises repayment plans

The Trump administration has postponed wage garnishment for federal student loan borrowers in default while the Education Department finalises new repayment plans. Involuntary collections, including Administrative Wage Garnishment and the Treasury Offset Program, remain paused, providing relief to millions of borrowers. The department plans to offer revised repayment options starting July 1. Advocates welcomed the delay, warning that resuming collections could deepen debt for millions. More than five million Americans are currently in default, according to department data.