Education Department Pauses Wage Garnishment for Defaulted Student Loan Borrowers
Investopedia·2026-01-16 21:01
KEY TAKEAWAYS The Department of Education is pausing wage garnishments for the millions of defaulted student loan borrowers.This is a significant reversal: The Department had previously said it would start cutting part of the defaulted borrowers' income in early February. The Department of Education backtracked from previous plans this week, saying it will not cut the wages of defaulted federal student loan borrowers yet. In a press conference on Monday, the Secretary of Education, Linda McMahon, said ...