01/20/2026
๐ข ๐๐ญ๐ฎ๐๐๐ง๐ญ ๐๐จ๐๐ง ๐๐ฉ๐๐๐ญ๐ (๐๐๐๐ข๐๐ข๐๐ฅ ๐๐๐ฉ๐๐ซ๐ญ๐ฆ๐๐ง๐ญ ๐จ๐ ๐๐๐ฎ๐๐๐ญ๐ข๐จ๐ง โ ๐๐๐ง๐ฎ๐๐ซ๐ฒ ๐๐, ๐๐๐๐)
If you are currently in default on federal student loans, the U.S. Department of Education has announced a ๐ญ๐๐ฆ๐ฉ๐จ๐ซ๐๐ซ๐ฒ ๐๐๐ฅ๐๐ฒ
in involuntary collections, including:
โข Wage garnishment
โข Tax refund offsets (Treasury Offset Program)
This pause is intended to give borrowers ๐ญ๐ข๐ฆ๐ ๐ญ๐จ ๐ญ๐๐ค๐ ๐๐๐ญ๐ข๐จ๐ง ๐๐ง๐ ๐๐ฑ๐ฉ๐ฅ๐จ๐ซ๐ ๐ญ๐ก๐๐ข๐ซ ๐ซ๐๐ฉ๐๐ฒ๐ฆ๐๐ง๐ญ ๐๐ง๐ ๐ซ๐๐ก๐๐๐ข๐ฅ๐ข๐ญ๐๐ญ๐ข๐จ๐ง options while new programs roll out beginning July 1, 2026.
This means that ๐๐จ๐ซ ๐ง๐จ๐ฐ, collections such as refund offsets are delayed โ but this is not loan forgiveness, and loans are still owed.
Borrowers are encouraged to use this time wisely to review their options and get back into good standing.
๐ Full announcement here:
ED announced that it will delay the implementation of involuntary collections on federal student loans, including Administrative Wage Garnishment and the Treasury Offset Program, to enable the Department to implement major student loan reforms.