If you have federal student loans in default, the government is getting ready to collect again, and it doesn't need a court to do it. The Education Department paused involuntary collections in January 2026. In October, reports said wage garnishment and private debt collection could restart as soon as November. Nearly 10 million Americans are in default, according to the Roosevelt Institute.
The good news: garnishment can't start without a written notice at least 30 days ahead, and what you do in those 30 days makes a real difference. Here's how it works and what to do, step by step.
See exactly how much could come out of your paycheck
Student Loan Garnishment Calculator →A federal student loan usually goes into default after about 270 days (roughly nine months) of missed payments. Being late isn't the same as being in default. To check, log in to your account at StudentAid.gov, or call your loan servicer. If your loan has been moved to the Default Resolution Group, it's in default.
Private student loans work differently. A private lender has to sue you and win in court before it can garnish wages. Everything on this page is about federal loans.
Wage garnishment for federal student loans takes the smaller of two amounts each payday:
Example: if you're paid $2,000 every two weeks with $380 in taxes and $90 for health insurance, your disposable pay is $1,530, and the most they can take is about $229.50 per paycheck, or close to $6,000 a year.
Days 1–3: Read it and check it. Confirm the loan is yours, the amount looks right, and note the exact deadline. Write it on your calendar.
Days 3–10: Call and ask about getting out of default. Ask the Default Resolution Group about loan rehabilitation and consolidation, and what your payment would be. Write down who you spoke to and when.
Before the deadline: put your request in writing. If the debt is wrong, or garnishment would cause a real hardship, request a hearing or file a hardship objection in writing before the 30 days run out. Acting inside the window keeps the most options open.
Keep copies of everything. Letters, forms, confirmation numbers and payment receipts. If something goes wrong later, your records are your proof.
| Rehabilitation | Consolidation | |
|---|---|---|
| How it works | At least 9 reasonable, affordable monthly payments | A new Direct Consolidation Loan pays off the defaulted one |
| Speed | Slower, about 9–10 months | Faster |
| Credit report | Default is removed when complete | Default record stays |
| If already garnished | Garnishment may continue for part of it | May not be available |
| Watch out for | Payments must be on time; a late one can set you back | Can affect existing forgiveness credit |
If you're behind but not in default, you have more options. Call your servicer about an income-driven repayment plan; a new one became available on July 1, 2026, and payments can be very low on a small income. Deferment or forbearance can buy time if you've lost a job. Any of these is far better than letting the loan reach default.
Yes. For defaulted federal student loans, the government can order your employer to withhold pay without a court order. It must send you a written notice at least 30 days before garnishment starts.
No. Administrative wage garnishment is capped at 15% of your disposable pay (pay after taxes and health insurance), and it can't take pay that would leave you with less than 30 times the federal minimum wage per week, which is $217.50.
Yes. Through the Treasury Offset Program, the government can take all or part of a federal tax refund and up to 15% of a Social Security benefit, as long as at least $750 a month is left. SSI and VA benefits should not be offset.
Rehabilitation takes at least nine reasonable, affordable monthly payments, and when it's complete the loan is out of default and the default is removed from your credit report. Garnishment can continue during part of the program, so you may pay on top of it for a while.