Student loan borrowers in default got a reprieve last week: The Trump administration said Friday it would postpone forced collections, for now.
The pause is an about-face for the U.S. Department of Education, which had announced in late December that it would start seizing defaulted borrowers’ paychecks as soon as early January. Over the summer, the department also walked back its plan to begin garnishing certain borrowers’ Social Security payments.
Around 9 million people are currently in default on their education debt, according to a recent estimate by Protect Borrowers, an advocacy organization.
“The delay will give borrowers a fighting chance at getting their loan into good standing, enrolling in a more affordable repayment plan and protecting their hard-earned wages from garnishment,” said Michele Zampini, associate vice president of federal policy and advocacy at The Institute for College Access & Success.
It’s unclear how long collection activity will be paused. The Education Department did not immediately respond to a request for comment.
