Overview
- The suspension covers Administrative Wage Garnishment and the Treasury Offset Program for borrowers in default, and no restart date has been announced.
- The decision reverses a rollout that began the week of Jan. 7, when about 1,000 garnishment notices were sent with plans to expand monthly.
- Education Secretary Linda McMahon acknowledged the halt earlier this week, and the department formalized the pause on Friday.
- The department says the delay will support implementation of reforms under the Working Families Tax Cuts Act, including a streamlined plan menu and a new income‑driven Repayment Assistance Plan slated for July 1, 2026.
- More than 5 million borrowers are in default, and although garnishments are paused, defaults continue to be reported to credit bureaus.