A pause on IBR forgiveness isn’t the same as a pause on collection.

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If you’re already in default, here’s what you need to know about the recent Department of Education decision, and how it could affect borrowers under Treasury collection.

⚠️ What Just Happened?

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^{In July 2025, the Department of Education quietly paused the forgiveness component of the Income-Based Repayment (IBR) program. For borrowers already in default, this has serious ripple effects, especially if your debt has been referred to the Bureau of the Fiscal Service for enforced collection.
Even if you’re not eligible for new forgiveness benefits right now, the conversation matters. Here’s why.}

🧾 You’re Likely Already in a Different System

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<sup>If your federal student loan was transferred to Treasury for enforced collection, you’re now in a different enforcement system, one that includes:
- Administrative wage garnishment
- Offset of tax refunds or Social Security
- Referral to the Department of Justice for litigation on large balances</sup>

These actions can move forward without a court order, and IBR forgiveness eligibility may no longer apply.

🔄 Will This Impact Garnishment or Treasury Offsets?

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Treasury doesn’t wait. If you’re already in default, the pause on forgiveness may not stop:
- Wage garnishment
- Social Security offsets
- Interception of tax refunds

That’s because these enforcement actions are administrative, not tied to your IBR status, and they move forward unless you formally intervene.

🛑 What Can You Do?

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Even if forgiveness is paused, you still have rights. You may be able to:
- Request a hearing to pause wage garnishment
- Submit hardship documentation to reduce collection pressure
- Negotiate a payment arrangement with the agency assigned to your debt

Each agency is different, and the Bureau of the Fiscal Service often requires detailed forms, proof of income, and deadlines that are easy to miss if you’re trying to do it alone.

📬 Keep an Eye on Your Mailbox

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The Bureau of the Fiscal Service (and other federal agencies) send important notices by mail. Therefore, mailing to your last known address is considered legally valid notice. Even if you’ve moved, that letter still counts. Make sure your contact information is current with the Department of Education and the Bureau of the Fiscal Service. Check your mailbox regularly so you don’t miss a deadline to respond.

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🤝 You’re Not Alone

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If your loan was transferred to Treasury, we help borrowers navigate this system every day, whether the goal is to pause garnishment, request relief, or understand what’s happening behind the scenes.

The forgiveness headlines don’t tell the full story. We do.

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📎 Need a clear next step? Our infographic, Facing Garnishment? Your 3-Step Action Plan, walks you through what to do — and when — if Treasury has already started taking money from your check or refund.

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