The Trump administration is reportedly preparing to restart involuntary collections on defaulted federal student loans, potentially exposing eligible borrowers to wage garnishment and federal payment offsets, including the withholding of tax refunds and certain benefits.
According to The Washington Sun on 19 October 2026, the Treasury Department is moving to hire private debt collectors, possibly as soon as November. Citing sources familiar with the discussions, the report said officials were weighing the timing of the plans ahead of the November 2026 midterm elections, with collections potentially resuming in 2027.
