The U.S. Education Department temporarily paused plans to seize tax refunds and garnish wages from borrowers in default, delaying enforcement tools that had been set to resume. The rollback halts the Treasury Offset Program and wage garnishment while the administration reviews policy and political optics. Fiscal watchdogs reacted sharply: the Committee for a Responsible Federal Budget called the pause an “incoherent political giveaway,” estimating the move could cost roughly $5 billion annually. Policy advocates and university leaders warned the pause complicates long-term federal budgeting and may shift political pressure onto institutions and taxpayers. For colleges and universities, the pause affects conversations around affordability, cohort default risks, and institutional financial-aid counseling as federal enforcement and revenue flows remain unsettled.