On Jan. 16, the U.S. Dept. of Education announced a temporary delay of involuntary collections on defaulted federal student loans. For now, borrowers who are behind on payments won’t have federal tax refunds seized or wages garnished. The Education Dept. said the delay supports the implementation of upcoming student loan repayment changes, including a new income-driven repayment plan scheduled to begin on July 1, 2026. It hasn’t been announced when involuntary collections will resume. The most recent data shows that about 5.3 million borrowers are in default. Have questions? Contact us.
