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The Independent UK
The Independent UK
National
Collin Binkley

Trump administration delays plan to withhold wages for student loan borrowers in default

US Trump Education States - (Copyright 2025 The Associated Press. All rights reserved)

The Trump administration is delaying its plans to withhold pay from student loan borrowers who default on their payments, backing off a measure that threatened to deliver a financial blow to millions of Americans.

The Education Department announced Friday involuntary collections on federal student loans will remain on hold as the agency finalizes new repayment plans. The shift reverses course on earlier plans to restart wage garnishments this month after a pandemic-era pause.

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