The U.S. Department of Education delayed involuntary collections on defaulted federal student loans, including Administrative Wage Garnishment (AWG) and the Treasury Offset Program (TOP). The Department announced the delay on January 16, 2026 and said it did not specify when collections will restart. The delay is intended to support implementation of new student loan repayment reforms and give defaulted borrowers more time to review repayment and rehabilitation options.
⚠️ Note: This information is for informational purposes only and does not constitute formal tax, legal, or compliance advice. Always consult with qualified tax advisors, legal counsel, and your organization’s internal teams for guidance specific to your situation. Additional regulations may apply. For the most accurate and up-to-date information, refer to official government resources and regulatory agencies.