Trump Administration Reverses Course, Halts Wage Garnishment for Millions in Student Loan Default

Jan 20, 2026

∙ Paid

Is Trump carrying out his mass deportation promises? The numbers might surprise you.

The U.S. Department of Education has paused plans to garnish wages and seize federal tax refunds for borrowers in default on their federal student loans, the latest policy shift from the Trump administration that affects millions of Americans.

The move reverses earlier plans to resume these collections as early as January 2026 after a multi-year pandemi…

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