U.S. Education Secretary Linda McMahon takes in a selection of grade school students’ patriotic artworks and high schoolers’ recent output in a special installation set up at Exeter-West Greenwich Regional Junior High and High School in Rhode Island on Monday, Jan. 12, 2026. (Photo by Alexander Castro/Rhode Island Current)

WASHINGTON — The U.S. Department of Education, for now, is backtracking on plans to garnish wages and seize tax refunds of student loan borrowers in default, the department announced Friday.

Less than a month after the agency said it would begin garnishing wages by sending notices to roughly 1,000 borrowers in default the first full week of January, the department said that the temporary delay would allow it to implement “major student loan repayment reforms” under Republicans’ tax and spending cut bill that President Donald Trump signed into law in 2025.

The delay would “give borrowers more options to repay their loans,” the department said. 

It was not immediately clear from the announcement how long the pause would last. 

Education Secretary Linda McMahon signaled earlier this week during the Rhode Island portion of her Returning Education to the States Tour that wage garnishment has been “put on pause for a bit.”  

The agency resumed collections for defaulted federal student loans in May after a pause that began during the early weeks of the COVID-19 pandemic.

A borrower can have their wages garnished as a consequence of defaulting on their loans, and a loanholder can order an employer to withhold up to 15% of their disposable pay to collect defaulted debt without being taken to court, according to Federal Student Aid, an office of the Education Department.

The delay also applies to the Treasury Offset Program, which “allows the federal government to collect income tax refunds and certain government benefits (for example, Social Security benefits) from individuals who owe debts to the federal government,” per FSA. 

Aissa Canchola Bañez, policy director for the advocacy group Protect Borrowers, said in a Friday statement that “after months of pressure and countless horror stories from borrowers, the Trump Administration says it has abandoned plans to snatch working people’s hard-earned money directly from their paychecks and tax refunds simply for falling behind on their student loans.” 

“Amidst the growing affordability crisis, the Administration’s plans would have been economically reckless and would have risked pushing nearly 9 million defaulted borrowers even further into debt,” she added, while pointing to a Jan. 7 letter from Protect Borrowers and other organizations calling on McMahon to “immediately halt its plan to resume garnishment of millions of struggling borrowers’ wages.”

The U.S. Education Department said it will start garnishing wages from student borrowers in default. (Catherine Lane/Getty Images)

WASHINGTON — President Donald Trump’s administration will start garnishing the wages of student loan borrowers in default beginning early next year, the U.S. Education Department said Tuesday. 

In an email, the department said it expects the first notices to be sent to roughly 1,000 borrowers in default the first full week of January and that the number of notices would increase each month. Wages could be garnished as early as 30 days after borrowers receive notice.

The agency noted that collections activities would be conducted only after borrowers were given sufficient notice and the opportunity to pay back their loans.

Persis Yu, deputy executive director and managing counsel for the advocacy group Protect Borrowers, blasted the decision as “cruel, unnecessary, and irresponsible” in a Tuesday statement. 

“As millions of borrowers sit on the precipice of default, this Administration is using its self-inflicted limited resources to seize borrowers’ wages instead of defending borrowers’ right to affordable payments,” Yu added. 

The agency resumed collections for defaulted federal student loans in May, following a pause that started during the early weeks of the COVID-19 pandemic. 

As a consequence of defaulting on one’s student loans, a borrower can have their wages garnished, and the “loan holder can order your employer to withhold up to 15% of your disposable pay to collect your defaulted debt” without being taken to court, according to Federal Student Aid, an office of the Education Department. 

With wage garnishment, borrowers have the right to “be sent a notice that explains ED’s intention to garnish your wages in 30 days, the nature and amount of your debt, your opportunity to inspect and copy records relating to your debt, your right to object to garnishment, and your option to avoid garnishment by voluntary repayments,” according to FSA.