Trump Administration Delays Forced Collections on Student Loan Defaults NYT | Top Stories By: Tara Siegel Bernard 17 January 2026 at 06:17 The Education Department has temporarily paused a plan to seize tax refunds and begin garnishing the wages of borrowers who have defaulted on their student loans. © Sophie Park for The New York TimesThe Education Department said it was postponing its plan to gradually resume garnishing the wages of those who have defaulted on their student loans.