The federal Education Department is delaying administrative wage garnishments on defaulted student loans so that it can implement new student loan repayment plans, the department said in a Jan. 16 press release.
The One Big Beautiful Bill Act (Pub. L. 119-21) created a new type of income-driven repayment plan to be available starting July 1, according to the press release. At the same time, the act reduces the number of possible student loan repayment plans.
The OBBBA also allows borrowers to rehabilitate a defaulted loan twice, according to the press release. Previously, a defaulted loan could only be rehabilitated ...
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