Trump administration delays plan to withhold wages for student loan borrowers in default

The Trump administration has delayed its plans to withhold wages from student loan borrowers in default, reversing earlier plans to restart wage garnishments after a pandemic-era pause. The Education Department announced that involuntary collections on federal student loans will remain on hold as the agency finalizes new repayment plans. This decision provides borrowers with more time to evaluate new repayment options set to be available starting July 1.