this post was submitted on 16 Jan 2026

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Education Department to delay collections on defaulted student loans (www.cnbc.com)

submitted 4 weeks ago by tonytins@pawb.social to c/news@lemmy.world

10 comments fedilink hide all child comments

The Education Department announced on Friday that it will delay the implementation of wage garnishment and other involuntary collection efforts affecting defaulted student loan borrowers.

The department said the delay affects involuntary collections on federal student loans through wage garnishments and the Treasury Offset Program, which is used to seize some or all of borrowers’ payments from the government, including tax refunds and Social Security benefits.

“The temporary delay will enable the Department to implement major student loan repayment reforms under the Working Families Tax Cuts Act...to give borrowers more options to repay their loans,” the department said in the announcement.

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[–] Bronzebeard@lemmy.zip 46 points 4 weeks ago (2 children)

Someone realized crashing the economy would be a bad idea?

[–] MacGuffin94@lemmy.world 43 points 4 weeks ago (1 children)

More likely they fired the people who know how to initiate the wage garnishment

[–] deHaga@feddit.uk 9 points 4 weeks ago (1 children)

Trump is shitting the bed on affordability

[–] ChicoSuave@lemmy.world 6 points 4 weeks ago (2 children)

Midterms are coming up and if he bankrupts all the voters they will spite vote against everything MAGA and undo the changes.

[–] gravitas_deficiency@sh.itjust.works 6 points 4 weeks ago (3 children)

You underestimate how rabidly some people are committed to that movement’s heinous dogma

[–] ChicoSuave@lemmy.world 3 points 3 weeks ago

I have personally witnessed the MAGA turn to progressive of a marine friend of mine after school loan forgiveness. The issue personally touches so many conservatives that it will actually change voting behavior.

Conservatives only care when the issue affects them personally and suddenly losing money to garnished wages will rupture the right wing loan saddled voting base.

[–] hector@lemmy.today 2 points 4 weeks ago

Yeah hating on the poor and dispossessed is not unpopular in their party. Fox popularized it decades back. Hurting the poor is something they actively take pleasure in, openly.

[–] Natanael 1 points 4 weeks ago

The question is if it wins then more support than they lose.

[–] JasonDJ@lemmy.zip 1 points 4 weeks ago

Hah like that would ever happen.

Erasing student loans with bankruptcy. What will they think of next.

[–] Bonesince1997@lemmy.world 10 points 4 weeks ago

Looks like TACO syndrome is spreading.