Student Loan Wage Garnishments Suddenly Paused

Millions of defaulted student-loan borrowers are catching a sudden break, as the U.S. Education Department has unexpectedly halted plans to garnish wages. The decision marks a significant pivot in the government's approach to collecting on past-due loans.

During a recent visit to a school in Rhode Island, Education Secretary Linda McMahon revealed the pause to reporters. The announcement caught many off guard, coming just weeks after the department signaled an aggressive ramp-up in collection efforts.

The halt on collections was not delivered through a formal press release, but rather in casual remarks to the press. When asked about the impact of garnishment on borrowers, Secretary McMahon offered a direct contradiction to recent policy.

"Well, actually, there is a pause."

McMahon elaborated on the administration's progress and the sudden stop to the next phase of collections. She noted that the government had already recouped significant funds before the decision to pause.

"We've now collected about $500 million. The next phase to go into a place was garnishment, and that's been put on pause for a bit."

The Department of Education did not issue a formal statement regarding the pause and has not yet responded to inquiries about the duration of this temporary relief.

The pause represents a sharp reversal from the department's stance in December 2025. At that time, officials announced that garnishment notices would begin arriving at the homes of approximately 1,000 defaulted borrowers in early January.

Furthermore, the plan was to increase the scale of those notices each month, targeting a broader swath of the nearly 9 million borrowers currently in default. This aggressive strategy followed the resumption of collections on defaulted loans in May, ending a five-year pause necessitated by the pandemic.

For borrowers, defaulting—defined as 270 days of missed payments—carries severe consequences beyond wage garnishment. These can include the seizure of federal benefits, specifically Social Security payments and tax refunds.

While the government has paused its efforts, advocacy groups had previously voiced strong opposition to the resumption of garnishments. The financial strain on vulnerable populations was a primary concern for those monitoring the policy.

Aissa Canchola Bañez, policy director at the advocacy group Protect Borrowers, issued a statement regarding the administration's original plan to garnish wages. She argued that the move would have had devastating economic ripple effects.

"[It] would have been economically reckless and would have risked pushing nearly 9 million defaulted borrowers even further into debt."

This perspective highlights the tension between the government's need to collect on outstanding debts and the financial fragility of millions of Americans still recovering from economic instability.

While the pause offers temporary breathing room, the long-term outlook remains uncertain. Borrowers in default are still liable for their debts, and the administration has not indicated a permanent cancellation of garnishment plans.

The lack of a formal announcement leaves questions regarding the timeline and criteria for this pause. For now, borrowers can expect their paychecks to remain untouched, but the situation remains fluid as the Department of Education determines its next move.