student loans debt wage garnishment.

The Trump administration is delaying its plans to withhold pay from student loan borrowers who default on their payments, backing off a measure that threatened to deliver a financial blow to millions of Americans. An announcement from the Education Department on Friday said involuntary collections on federal student loans will remain on hold as the agency finalizes new repayment plans. The shift reverses course on earlier plans to restart wage garnishments this month after a pandemic-era pause. Federal student loan borrowers can have their wages garnished and their federal tax refunds withheld if they default on their loans, meaning they are at least 270 days behind on payments.