The U.S. Education Department has delayed plans to seize tax refunds and garnish wages over student loans that are in collection.

The announcement comes a little more than a week after the agency had planned to start warning defaulted borrowers their wages would be garnished.

Federal student-loan borrowers who haven’t made payments in more than 360 days could see up to 15% of their wages automatically deducted from their paychecks. In addition, the g

The U.S. Department of Education is sending notices to more than 5 million borrowers who are in student loan default as the Trump administration steps up enforcement.

The Education Department has announced it will delay the implementation of wage garnishment and other collections efforts for defaulted student loans.

Defaulted student loan borrowers catch a break. Department of Education pauses wage garnishment – for now. But risks still lurk.

KEY TAKEAWAYS The Department of Education is pausing wage garnishments for the millions of defaulted student loan borrowers.This is a significant reversal: The Department had previously said it would start cutting part of the defaulted borrowers' income in early February.

The Education Department had said earlier this month that it would start garnishing wages the week of January 7.