Trump Administration Pauses Student Loan Garnishment Revival

The Trump administration has delayed restarting wage garnishments and other penalties for federal student loan borrowers in default. The Education Department will withhold these actions while developing new repayment strategies, offering financially-strapped borrowers more time. Student loan advocates praise the delay, emphasizing the plan’s economic impact.

The Trump administration has suspended its plans to recommence wage garnishments and other financial penalties against student loan borrowers who have defaulted on their payments. This move comes as part of a broader effort by the Education Department to finalize newer, more affordable repayment plans.

Nicholas Kent, the chief of higher education, remarked on the agency's commitment to assisting borrowers with more transparent repayment options. The plan to enforce wage garnishments was initially set to restart this month after lifting a pandemic-era pause.

While more than 5 million Americans are already in default and millions more are at risk, the department's new strategies await implementation. Advocates have applauded this delay, cautioning against the financial risks that the proposed garnishments could have posed.

(With inputs from agencies.)