The U.S. Department of Education announced a year ago that collections on defaulted student loans would restart, yet they have not fully resumed. Since the onset of the COVID-19 pandemic, federal student loan borrowers have not faced regular collections, leaving many without wage garnishments for years. Currently, about 8.8 million borrowers are in default, with many more behind on payments. The Education Department initially stated that collections would resume in May 2025, but this timeline has been revised multiple times. In December, officials indicated that wage garnishments would restart in early 2026, but this was retracted shortly after. The delay is attributed to the introduction of new repayment options under the “One Big Beautiful Bill,” including the Repayment Assistance Plan, which will take effect on July 1, 2026. The responsibility for student loan collections will shift to the U.S. Department of the Treasury, which plans to initiate voluntary collections, allowing borrowers to explore rehabilitation or consolidation options. However, the timeline for involuntary collections, including wage garnishments, remains unclear.