Trump Administration’s Delay On Student Loan Collections Offers Borrowers Time To Get Current

The Trump administration has temporarily paused involuntary collections on defaulted federal student loans, giving borrowers extra time to get out of default and into more affordable repayment plans.​

What the delay does

• Collections such as wage garnishment and seizure of tax refunds and certain Social Security benefits are on hold for now, reversing earlier plans to restart these measures this month.​

• The Education Department has not set a new end date, describing the pause as temporary while it finishes overhauling the student loan repayment system under recent Trump-era legislation.​

Why this helps borrowers get current

• During the pause, defaulted borrowers can consolidate or rehabilitate their loans without the immediate threat of garnishment, tax refund offset, or new collection actions, which makes it easier to regain good standing.​

• The administration says the delay is meant to give borrowers time to evaluate and enroll in new repayment options created by Trump’s recent law, including updated income‑driven repayment and expanded opportunities to rehabilitate defaulted loans.​

Steps borrowers are urged to take

• Borrowers in default are being encouraged to contact their default loan servicer, explore consolidation or rehabilitation, and apply for income‑driven repayment so they are set up before collections eventually restart.​

• Experts advise filing 2025 tax returns promptly to secure any refund while offsets are paused, and acting quickly to resolve default so future wages or Social Security benefits are protected once involuntary collections resume.​