NAACP and Coalition Advocated on Behalf of Defaulted Student Loan Borrowers, Department of Education Pauses Wage Garnishment

WASHINGTON — The U.S. Department of Education has paused its plans to resume Administrative Wage Garnishment for federal student loan borrowers in default, a move that would have allowed the government to seize up to 15 percent of a borrower's paycheck starting this month. 
 

This pause comes after sustained advocacy from the NAACP, National Education Association, Protect Borrowers, AFT, Debt Collective, Young Invincibles, and Student Debt Crisis center who fought on behalf of borrowers and warned that restarting wage garnishment would deepen economic hardship for millions of working families — particularly Black borrowers — already struggling in an unstable economy. 
 

"Garnishing wages in the middle of an economy broken by reckless leadership would have punished working people for circumstances beyond their control," said Wisdom Cole, Senior Advocacy Director at the NAACP. "Pausing this policy gives borrowers some breathing room and a real chance to get back on track. This is a critical step toward fairness and stability for borrowers who have been pushed to the brink, all because they wanted an education."  
 

Under the revised approach, borrowers in default will have the opportunity to enroll in a standard repayment plan or a new income-driven repayment option that waives unpaid interest based on income. The policy also gives borrowers a pathway to rehabilitate their loans and regain good standing without losing wages needed for rent, food, and basic necessities. 

Black borrowers are disproportionately likely to experience default due to racial wealth gaps, predatory lending practices, and higher student debt burdens. Restarting wage garnishment without meaningful relief would have compounded these inequities while doing little to address the root causes of default. 
 

"This decision proves that advocacy works," Cole added. "But it must be followed by long-term solutions that prioritize borrowers over bureaucracy, people over profits and ensure student loan policies promote opportunity, not punishment." 
 

The NAACP will continue pressing for comprehensive student debt reform that protects borrowers, advances racial equity, and prevents future harm caused by aggressive and punitive collection practices. 

About the NAACP
 

The NAACP advocates, agitates, and litigates for the civil rights due to Black America. Our legacy is built on the foundation of grassroots activism by the biggest civil rights pioneers of the 20th century and is sustained by 21st century activists. From classrooms and courtrooms to city halls and Congress, our network of members across the country works to secure the social and political power that will end race-based discrimination. That work is rooted in racial equity, civic engagement, and supportive policies and institutions for all marginalized people. We are committed to a world without racism where Black people enjoy equitable opportunities in thriving communities.

NOTE: The Legal Defense Fund – also referred to as the NAACP-LDF - was founded in 1940 as a part of the NAACP, but now operates as a completely separate entity.