Education Department pauses plan to seize wages, tax refunds of defaulted student-loan borrowers
The announcement comes a little more than a week after the agency had planned to start warning defaulted borrowers their wages would be garnished.
Last updated: 2026-01-20 08:54:08 ET
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The announcement comes a little more than a week after the agency had planned to start warning defaulted borrowers their wages would be garnished.
In New York, Assemblywoman Linda B. Rosenthal has already sponsored a bill that would require automatic outage-related refunds.
Millions of people are at risk of the government’s seizing their refunds to pay what is owed on student loans.
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