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International Business Times UK
International Business Times UK
Business
Jim Manzon

Trump Admin Suspends Student Loan Wage Garnishments After Fierce Backlash — But 9 Million Borrowers Remain in Default Limbo

Over 42 million Americans owe $1.6 trillion in student debt, making affordability a key issue in midterm elections. (PHOTO: Igor Rodrigues/Unsplash)

The Trump administration has unexpectedly suspended its plan to garnish wages from millions of student loan borrowers in default, reversing course just days after the first collection notices were issued.

Education Secretary Linda McMahon confirmed the policy change on 16 January, telling reporters in Rhode Island that wage garnishment efforts have been 'put on pause for a bit.' The Department of Education formalised the decision in a press release on the same day, stating that involuntary collections through both wage garnishment and the Treasury Offset Program would be delayed indefinitely.

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