The Education Department paused plans to resume Treasury Offset Program seizures and wage garnishments for borrowers in default, extending a de‑facto moratorium on some forced collections. The move reversed earlier momentum to restart aggressive collections after pandemic pauses and drew swift criticism and praise across the political spectrum. Budget watchdogs, including the Committee for a Responsible Federal Budget, called the action an "incoherent political giveaway" and estimated a roughly $5 billion annual revenue loss. ED’s pause creates short‑term relief for many defaulted borrowers but raises questions for institutions that advise students on repayment and for federal budgeting assumptions tied to debt servicing receipts.
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