Today, the White House announced an indefinite pause of the collection of defaulted federal student loan debt, including through the Treasury Offset program, which applies any tax refunds towards a defaulted borrower’s outstanding federal student loan debt.
This pause began as a temporary pandemic measure under the first Trump Administration and was extended through both bipartisan legislation and Administrative action during the Biden Administration.
The current Trump Administration restarted the Treasury Offset Program in May 2025 and appeared on track to be restarting wage garnishment. Today’s announcement reverses these previous decisions by reviving and extending the pandemic era pause. Doing so could lose up to $5…