On January 16, the U.S. Department of Education (ED) announced it will delay involuntary collections (wage garnishments) on federal student loans while it is implementing major student loan repayment reforms [ED, U.S. Department of Education Delays Involuntary Collections Amid Ongoing Student Loan Repayment Improvements, 1-16-26].
ED said the delay in collections will give defaulted borrowers additional time to evaluate new repayment options. Although ED does not give a specific time for the wage garnishments to begin, one of the upcoming repayment plans is scheduled to begin July 1, 2026.
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Jyme Mariani, Esq., is Director of Payroll Information Resources for PayrollOrg.
